A$ Struggling Following Disappointing China Growth Target

China’s more moderate 2023 growth target of “around 5%” has weighed on the Aussie and commodity prices today. AUDUSD is down 0.3% to about 0.6751 after reaching a high of 0.6768 earlier in the session. It is currently trading off its intraday low of 0.6741. The USD index is up 0.1%.

• Today’s AUDUSD correction hasn’t yet tested initial support of 0.6695. The AUDNZD is down 0.1% to 1.0864 but still above the session low of 1.0839. Aussie is down 0.3% against the yen and is around 91.68. AUDEUR is down 0.3% to 0.6347 and AUDGBP -0.2% to 0.5610.
• Equity markets are mixed during APAC trading. The ASX is up 0.6% and the Nikkei +1.2% but CSI 300 down 0.4%. The S&P e-mini is flat. WTI oil prices are down 0.6% to $79.22/bbl, around the intraday low. Iron ore is sharply lower at around $123/t on the China growth target news.
• The February MI inflation gauge eased slightly but the quarterly average implies that Q1 inflation may be higher than Q4. See MI Inflation Gauge Elevated, Maybe Q1 The Peak?
• There are no Fed speakers today and only US January factory orders and final durable goods orders print. The focus for Australia is Tuesday’s RBA meeting, where +25bp is widely expected.