Caixin services PMI falls to lockdown levels
RBA leaves rates on hold, as expected
Yuan, yen, AUD and NZD hit oneweek lows vs USD

TOKYOSINGAPORE, Sept 5 Reuters The dollar was firm on Tuesday, with Asian currencies weighed down by underwhelming data in China and the Australian dollar lower as traders figured that interest rates may have peaked Down Under.

The Reserve Bank of Australia left its benchmark cash rate on hold at 4.1 for a third month in a row, and although it left the door open to future increases, markets are pricing only about a 30 chance that rates go higher from here.

The Australian dollar was already falling before the decision, which was expected, and briefly hit a oneweek low of 0.6417 immediately afterward. Australia39;s current account surplus also came in smaller than expected on Tuesday.

The RBA39;s policy stance overall remains a weight on the Aussie, especially against the U.S. dollar, where the Fed funds rate seems highly likely to remain 125 basis points above the RBA cash rate deep into 2024, said Westpac analyst Sean Callow.

Elsewhere, China39;s services activity expanded at its slowest pace in eight months in August to levels last seen when swathes of the country were under lockdown, according to the Caixin PMI.

The yuan fell about 0.2 to a oneweek low of 7.2947 per dollar and the Chinasensitive New Zealand dollar was dragged 0.4 lower to a oneweek low of 0.5918.

Various policy easings by the Chinese government have not convinced…