Better Caixin Services PMI & AU Trade Balance Provide Little Initial A$ Boost

AUD/USD sits not too far off session lows, last in the 0.6705/10, around 0.20% weaker for the session so far. Earlier lows were just under 0.6700. We popped slightly higher post the better Caixin services PMI print. There hasn't been much follow through though. Wednesday session lows come in just under 0.6680.

• The weaker equity backdrop is providing USD support and weighing on the A$ against safe havens. AUD/JPY sits slightly above session lows, last in the 87.90/95 region.
• Earlier, the better than expected trade balance figures for Feb (A$13.87bn, forecast of A$11.22bn) didn't aid the currency.
• Weaker imports -9% m/m, versus exports -3% m/m, may be weighing at the margins, as it implies a softer domestic demand backdrop all else equal (although price effects could also be lowering the import bill).
• The RBA financial stability review was also released and focused on recent turmoil in the global banking system, noting the Australian financial system remains well placed. Households are under pressure, although most look well positioned to cope with a higher unemployment rate than currently forecast (i.e. a more adverse scenario in terms of the outlook).