Correction Time on Indices?

Starting with the Asian markets, China's Caixin services PMI provided a positive jolt, surpassing expectations by reaching 51.5, well above the forecasted 50.5. In contrast, Tokyo's Core CPI slightly underwhelmed, registering at 2.3% against an anticipated 2.4%. Meanwhile, the Australian central bank held steady, keeping interest rates unchanged at 4.35%, aligning with the consensus among analysts.

As we shift focus to the European session, the calendar remains relatively calm, but all eyes are on the impending data from the United States. The spotlight falls on the ISM services PMI, anticipated at 52.2, and JOLTS job openings, expected to tally around 9.31 million.

In the currency domain, the Australian dollar finds itself under pressure, emerging as the weakest performer, particularly following the Reserve Bank of Australia's decision and statement. Contrasting this, Eastern European currencies like the Czech Crown, Hungarian Forint, and Polish Zloty are exhibiting strength.

Reflecting on Monday's trends, the American dollar dominated as the strongest currency, influencing various pairings across the board. This strength is evident in the Euro, which continues to carve new lows, and in the AUD/USD pair, where the combination of a weakening Australian dollar and a strengthening US dollar led to the formation of two pronounced bearish candles.

Shifting our gaze to the stock indices, we're witnessing the beginnings of profit-taking actions. The S&P 500 is inching closer to early August highs, while the Dow Jones initiates a mild correction. The NASDAQ, having slipped below the crucial 15,900 points support, is now grappling to regain its footing. The German DAX, in contrast, stands resilient, pushing upwards in today's session.

On the commodities front, precious metals continue their downward trajectory after a stark reversal from yesterday's peak. This reversal, marked by a sharp decline, paints a rather grim picture for the mid-term outlook, especially for oil, which seems to be inching closer to its long-term lows.