Beginning of a Santa Claus Rally?

AUD

A strong Aussie pushed higher after hours on Friday, making the most of higher than expected Chinese November Manufacturing PMIs released during the day, printing at 50.7 compared to the estimated 49.6. Weaker data from overseas also assisted the AUD in clawing its way to some of the highest levels we've seen in a while. Asian equities didn't follow suit, closing lower to end the week as Hong Kong fell 1.3%, Korea -1.2%, and China -0.4%. The ASX finished down 0.2% with IT the biggest mover, losing 1.1%. No data of note due today, however tomorrow will see the last RBA Official Cash Rate decision for 2023 with markets all but sure there will be no change to rates after last week's softer inflation data.

USD

The AUDUSD opens higher this morning at 0.6674, slightly off the 4-month high point and continuing what is starting to look more and more like a Santa Claus Rally. USD weakness was driven by Friday night's ISM Manufacturing PMI falling well short of expectations, printing at 46.7vs 47.9 expected. Fed Chair Powell hit the wires saying that the Fed was prepared to tighten more if it is appropriate and that it was premature to think about rate cuts, however markets shrugged these comments off and chose to focus more heavily on the weak manufacturing data. The week ahead will see a flood of US economic data starting tomorrow evening with ISM Services PMI, JOLTS and Job Openings, before culminating with the week's major data piece; Non-Farm Employment report on Friday night.

EUR

The AUDEUR opens significantly higher this morning at 0.6130, the highest level seen since the end of July. European equities were strong with the DAX closing up more than 1% while the CAC gained 0.5% on the day. Datawise, French, Spanish and German November Manufacturing PMIs beat flat expectations, whilst Italian Manufacturing PMI fell short, overall the EUR Final Manufacturing PMI delivered above expectations but wasn't enough to halt the AUD gains. Steady data releases due from the EZ this week with ECB President Lagarde due to speak tonight.

GBP

Following the trend, the AUDGBP opens up this morning at 0.5245 although not as significant a high as against USD or EUR. The FTSE following making gains of 0.5% into the close on Friday in what was a good session for northern hemisphere bourses. Friday's data from the UK showed Nationwide HPI m/m and Final Manufacturing PMI both beating expectations. Only low-tier data due for release from the UK until Wednesday morning where Construction PMI is set to be printed along Bank Of England Governor Bailey who is set to speak on the Financial Stability Report.

NZD

The AUDNZD has opened slightly higher this morning at 1.0745, steadying after the losses made in the aftermath of Wednesday's RBNZ interest rate meeting. With the afterglow of the RBNZ Rate Statement fading, this morning Overseas Trade Index q/q was better than expectations despite still showing a contraction on previous numbers.  Tomorrow morning will see the release of ANZ Commodity Prices.