AUD steady after mixed data overnight
We have the good and bad in terms of Australian data overnight, starting off with the AIG services PMIs for December. The index fell sharply from a previous reading of 53.7 to 48.7, signaling a move right back into contractionary territory. Services are not the leading metric for growth in Australia, but this will have an impact on jobs to some degree.
However, later on in the overnight session, we then got the retail sales numbers for November, and these come in much higher than the 0.4% forecast, at 0.9%. Spending figures are a key signal for the economy, but into and over the Xmas period, the data can be erratic.
Even so, the mixed outcomes have had a net effect on the AUD, which for now seems to have based out against the USD in the mid 0.6800's, though this may change from the USD side when we get the US non-farm payrolls report later on this afternoon.
The calm risk mood has also helped the AUD to stabilise, with some recovery in the cross rate with NZD (AUD/NZD) also higher, but this looks to be an adjustment to what many have seen as an overshoot on the downside.