AUDUSD Approaches 65c Again, China PMI Provides Support

Aussie is generally underperforming as equity markets are following the US lower but AUDUSD is off its intraday low following the higher-than-expected China Caixin services PMI. There has been little new information so far today to drive direction. AUDUSD trended lower through the session and approached 65c again. It is currently down 0.1% to 0.6508, after an intraday low of 0.6504. The USD index is steady.

• Aussie is outperforming kiwi though with the pair up 0.1% to 1.0924 but off the high of 1.0931. AUDJPY is down 0.1% to 98.69. AUDEUR is 0.1% lower at 0.6043 and AUDGBP -0.1% to 0.5177.
• Equities are down across the region with the ASX -1.2%, Hang Seng -0.5% and CSI 300 -0.2%. The S&P e-mini is down 0.1%. Oil prices are holding onto Tuesday’s gains with WTI flat at $85.13/bbl. Copper is 0.3% higher and iron ore is steady around $103/t.
• Later Fed Chair Powell speaks on the economic outlook and Bostic, Bowman, Goolsbee, Barr and Kugler also appear. On the data front, there are US March services ISM/PMI and ADP employment, and euro area March preliminary CPI (see MNI Euro Area CPI Preview) and February unemployment.