0.77 Handle Reclaimed

AUD/USD touching session highs of 0.7721 after touching lows of 0.7682 earlier in the session. AUD is spurred by reports that New South Wales found no new cases of Covid-19 yesterday, indicating stricter containment measures over the festive period could be having the desired effect.

• Earlier in the session data from Markit showed Australia Manufacturing PMI for December held near 3-year highs at 55.7. Chris Williamson, Chief Business Economist at IHS Markit, said: "Australia's manufacturers ended 2020 on a strong note, reporting one of the strongest upturns in production since 2018 as order books continued to recover. Many firms even struggled to boost capacity sufficiently to meet the recent surge in demand, despite the sector taking on extra staff at the fastest rate for two years." Markets largely shrugged off the data.
• China's Caixin Manufacturing PMI, which focuses on SME's, fell to 53.0 in December from November's multi-year high of 54.9, missing the expected reading of 54.7. Output falls to 55.4 vs 57.1 in Nov. New orders fall vs prior month to hit the lowest reading since Aug. 2020. While the metrics are still in expansionary territory, growth is showing signs of flattening towards the end of 2020.