The Australian dollar dropped against its most major counterparts in the European session on Monday, as China lowered economic growth target for this year, diminishing the likelihood of more stimulus to boost recovery.

Outgoing Premier Li Keqiang announced a growth target of around 5.0 percent in 2023, less than last year's goal of around 5.5 percent.

The fiscal deficit is projected to reach 3 percent of GDP in 2023 compared to 2.8 percent in 2022.

Beijing had missed its growth target last year by a bigger margin as the economy was strictly under pandemic related restrictions.

Investors cautiously awaited Federal Reserve Chair Jerome Powell's testimony this week for more hints on bigger rate hikes.

The aussie was down against the loonie, at 0.9147. On the downside, 0.89 is possibly seen as its next support level.

The aussie dipped to 1.5843 against the euro, its lowest level since December 29. If the currency slides further, 1.61 is likely seen as its next support level.

The aussie weakened to a 4-day low of 0.6716 against the greenback and a 5-day low of 91.42 against the yen, from its prior highs of 0.6769 and 91.91, respectively. The aussie may locate support around 0.66 against the greenback and 90.00 against the yen.

In contrast, the aussie appreciated against the kiwi, touching a 6-day high of 1.0892. The currency is seen facing resistance around the 1.10 level.

AUD vs US Dollar (FX:AUDUSD)
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AUD vs US Dollar (FX:AUDUSD)
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