EURAUD Euro vs Australian Dollar

Commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Tuesday, as Asian shares traded lower after China set this year's GDP growth target at 5 percent and vowed to push ahead with transforming the growth model in the face of a raft of economic problems.

Earlier today, a private survey showed that China's services activity grew at a slower pace in February.

Investors also awaited Federal Reserve Chair Jerome Powell's congressional testimony and key jobs data for further clues on the U.S. central bank's rate trajectory.

Crude oil prices ended lower on concerns about the outlook for energy demand after OPEC extended its output cuts to the end of the second quarter. West Texas Intermediate Crude oil futures for April ended lower by $1.23 or 1.5 percent at 78.74 a barrel.

The European Central Bank announces its monetary policy decision on Thursday, with investors waiting for cues on when it would start easing interest rates from record highs.

In economic news, the services sector in Australia moved to expansion in February, the latest survey from Judo Bank said on Tuesday with a services PMI score of 53.1. That's up from 49.1 and it moved above the boom-or-bust line of 50 that separates expansion from contraction.

Meanwhile, Australia posted a seasonally adjusted current account surplus of A$11.8 billion in the fourth quarter of 2023, the Australian Bureau of Statistics said on Tuesday. That beat forecasts for a surplus of A$4.8 billion following the upwardly revised A$1.3 billion surplus in the previous three months.

The capital and financial account deficit was A$9.730 billion, a turnaround of A$13.214 billion on the third quarter 2023 surplus. The net international investment liability position was A$836.635 billion at 31 December 2023.

In the Asian trading today, the Australian dollar fell to a 3-1/2-month low of 1.6744 against the euro and nearly a 3-week low of 0.6478 against the U.S. dollar, from yesterday's closing quotes of 1.6665 and 0.6511, respectively. If the aussie extends its downtrend, it is likely to find support around 1.69 against the euro and 0.63 against the greenback.

Against the NZ dollar and the yen, the aussie slipped to 4-day lows of 1.0665 and 97.47 from Monday's closing quotes of 1.0681 and 98.00, respectively. The aussie may test support near the 1.05 region.

The aussie slipped to a 6-day low of 0.8806 against the Canadian dollar, from yesterday's closing value of 0.8835. On the downside, 0.87 is seen as the next support level for the aussie.

The NZ dollar fell to nearly a 3-week low of 0.6073 against the U.S. dollar and nearly a 1-1/2 month low of 1.7862 against the euro, from yesterday's closing quotes of 0.6091 and 1.7811, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.59 against the greenback and 1.80 against the euro.

Against the yen, the kiwi dropped to a 4-day low of 91.38 from Monday's closing value of 91.72. The kiwi may test support near the 90.00 region.

The Canadian dollar fell to nearly a 3-month low of 1.4751 against the euro and a 4-day low of 1.3599 against the U.S. dollar, from yesterday's closing quotes of 1.4731 and 1.3571, respectively. If the loonie extends its downtrend, it is likely to find support around 1.48 against the euro and 1.37 against the greenback.

Against the yen, the loonie edged down to 110.64 from yesterday's closing value of 110.86. The loonie is likely to find support near the 108.00 region.

Looking ahead, PMI reports from various European economies and U.K. for February and Eurozone PPI for January are due to be released in the European session.

In the New York session, U.S. Redbook report, U.S. and Canada PMI rports for February and U.S. factory orders for January are slated for release.

At 12:00 pm ET, Federal Reserve Vice Chair for Supervision Michael Barr will participate virtually in panel, "CRA Modernization: A Conversation with Agency Leadership" before the 2024 National Interagency Community Reinvestment Conference in Portland, Oregon, U.S.

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