Astralian dollar falls as the S&P/ASX 200 Index declines.

The Australian Dollar (AUD) loses its intraday gains and moves in the opposite direction on Monday. Aided by a stable US Dollar and higher US Treasury yields. Furthermore, the decrease in the ASX 200 index put additional negative pressure on the Aussie Dollar, weakening the AUDUSD pair.

The US ISM Manufacturing PMI (February) fell to 47.8 from 49.1, compared to the expected increase to 49.5.

Australian Dollar Traders are likely to be waiting for significant Australian data releases. Such as the Services Purchasing Managers Index (PMI) for February on Tuesday. And the Gross Domestic Product (GDP) for the fourth quarter of 2023 on Wednesday.
The Australian dollar gained some support from the Australia Melbourne Institute Inflation Report for February. Which indicated a 4.0% year-over-year increase. However, this increase was less than the prior one of 4.6%. Building Permits (MoM) fell by 1.0% in January. Against a projected increase of 4.0%. Nonetheless, this result marked an improvement over the previous decrease of 10.1%. Furthermore, last week’s Consumer Price Index (CPI) data showed a 3.4% increase in January. Slightly lower than the market consensus of 3.5%. The data backed the case. The Reserve Bank of Australia (RBA) will explore reducing interest rates later this year.

The US dollar remains stable as US Treasury yields rise.

The US Dollar Index (DXY) could be pushed lower as a downturn in the US manufacturing sector was noted in February. Despite this contraction, Federal Reserve (Fed) officials have been cautious and have not announced any rapid interest rate decreases. Providing some support for the US dollar. Investors are closely watching future economic data releases, such as the ISM Services PMI, ADP Employment Change, and February Nonfarm Payrolls. Furthermore, Federal Reserve Chair Jerome Powell’s speeches on Wednesday and Thursday will be the focal point.

Daily Market Movers: Australian Dollar Depreciates Amid Stable US Dollar.

The Australian Dollar (AUD) loses its intraday gains and moves in the opposite direction on Monday. Australia’s TD Securities Inflation (MoM) fell by 0.1%.in February, a decrease from the previous month’s 0.3% increase.The Australian Bureau of Statistics reported that Company Gross Operating Profits (QoQ) rose by 7.4% in the fourth quarter of 2023, compared to an estimated 1.8% growth and a 1.6% fall in the previous quarter.

Australian Building Permits (YoY) increased by 10% in January, reversing a prior decrease of 24%.
The Judo Bank Manufacturing PMI reported a little increase in Australia’s manufacturing sector, with the February figure climbing to 47.8 from 47.7 the prior period.
Seasonally adjusted Australian Retail Sales (MoM) increased by 1.1% in January, falling short of expectations of 1.5% but rebounding from a 2.7% loss the previous month.
Australian Private Capital Expenditure increased by 0.8% in the fourth quarter of 2023, compared to the predicted 0.5% and 0.6% previously.
Warren Hogan, Chief Economic Advisor at Judo Bank, expressed concern about Australia’s manufacturing sector, claiming that it is not growing. This observation puts into doubt the idea of a post-pandemic manufacturing resurgence.

Premier Li Qiang of the People’s Bank of China is scheduled to announce China’s economic growth target of approximately 5% on Tuesday.

China’s National People’s Congress (NPC) spokesman, Lou Qinjian, announced to the media that the Congress will hold its annual meeting in Beijing from March 5 to 11. Lou added. That the government “will make new laws to deepen economic reform, including financial institutional reform to promote private companies.” Furthermore, Premier Li Qiang of the People’s Republic of China (PBoC) is likely to unveil China’s 5% economic growth objective during Tuesday’s session.
Atlanta Fed President Raphael W. Bostic has voiced his belief that the first reduction in interest rates would most likely be acceptable, with the earliest possible date being the end of current year.

Commerzbank economists believe that the impending US government shutdown has had little impact on the US dollar thus far. They suggest that the market has become indifferent or desensitized to the threat of shutdowns. Resulting in a lack of substantial response.
According to the CME FedWatch Tool, the probability of rate cuts in March is 5.0%. While the chances of cuts in May and June are 26.8% and 53.8%, respectively.
The US ISM Manufacturing PMI (February) fell to 47.8 from 49.1, missing the market forecast of 49.5.
The US Michigan Consumer Sentiment Index decreased to 76.9 in February, falling below the market expectation of Rates would most likely be acceptable, with the earliest possible date being the end of current year.
Commerzbank economists believe that the impending US government shutdown has had little impact on the US dollar thus far. They suggest that the market has become indifferent or desensitized to the threat of shutdowns, resulting in a lack of substantial response.
According to the CME FedWatch Tool, the probability of rate cuts in March is 5.0%, while the chances of cuts in May and June are 26.8% and 53.8%, respectively.
The US ISM Manufacturing PMI (February) fell to 47.8 from 49.1, missing the market forecast of 49.5.
The US Michigan Consumer Sentiment Index decreased to 76.9 in February. Falling below the market expectation of