Ella 
The Australian dollar (AUD) continued its third straight session of losses on Wednesday, facing downward pressure amid weakness in the stock market. Australia’s S&P/ASX 200 index fell for a third straight session, reflecting a sell-off in Wall Street’s technology stocks and lower mining stocks.
The Australian dollar was largely unaffected by weaker-than-expected gross domestic product (GDP) data. Gross domestic product (GDP) grew by 0.2% quarter-on-quarter in the fourth quarter of 2023, slightly lower than market expectations of 0.3%. However, GDP grew 1.5% year-on-year, beating expectations of 1.4% but down from the previous reading of 2.1%.
The Reserve Bank of Australia (RBA) continues to monitor the economy for signs of slowing and aims to bring inflation back to target. Economic growth is expected to slow further to 1.3% by June 2024.
The U.S. dollar index (DXY) attempted to halt the streak, buoyed by a pickup in U.S. Treasury yields ahead of Federal Reserve Chairman Jerome Powell’s scheduled testimony before the U.S. House Financial Services Committee on Wednesday and Thursday. Three days of decline. However, the U.S. dollar (USD) came under downward pressure after U.S. ISM Services Purchasing Managers Index (PMI) data missed expectations. Wednesday will focus on changes in U.S. ADP employment numbers for February.
