AUSTRALIAN DOLLAR MOVES SIDEWAYS AMID A FLAT ASX 200, STABLE US DOLLAR

• Australian Dollar remains tepid, possibly influenced by a risk-off sentiment.
• Australian Services PMI rose to a ten-month high of 53.1 in February, against 49.1 prior.
• China aims for 5% GDP growth in 2024 by creating jobs and defusing risks.
• US Dollar maintains stability despite lower US Treasury yields.

The Australian Dollar (AUD) consolidates with a negative bias on Tuesday after experiencing losses in the previous session, possibly due to prevailing risk-off sentiment amid a stagnant ASX 200 Index. Additionally, China aims for approximately 5% GDP growth in 2024 by focusing on job creation and risk mitigation. Chinese authorities emphasize the importance of continuing proactive fiscal policies and prudent monetary measures.

Australian Dollar remains unaffected by the positive performance of the Judo Bank Services Purchasing Managers Index (PMI), which surged to a ten-month high of 53.1 in February. This increase pushed the index above the 50.0 threshold, indicating expansion, and surpassed the previous reading of 49.1. Additionally, the Composite PMI rose to 52.1 compared to the previous 49.0, marking a nine-month high. Traders are now awaiting the release of the Gross Domestic Product (GDP) data for the fourth quarter of 2023 on Wednesday.

The US Dollar Index (DXY) remains relatively unchanged, displaying a sideways movement amid subdued US Treasury yields. Market participants are closely eyeing crucial United States (US) employment figures scheduled for release this week as they assess the Federal Reserve's (Fed) potential future actions. Fed Chairman Jerome Powell is set to testify before the US Congress' House Financial Services Committee regarding the Fed's Semi-Annual Monetary Policy Report on both Wednesday and Thursday, which could provide further insights into the central bank's stance and upcoming policy decisions.