Off Lows Come The Close, Sino-Aussie Tensions Eyed

YM finished +0.1 with XM +0.2, as the latter ticked away from lows as we moved through the Sydney session. The slow uptick was perhaps linked to headlines which revealed that Australia will lodge a complaint with the WTO re: Chinese barley tariffs, reserving the right for further WTO actions against China in future. The move shouldn't really come as a surprise but does represent the latest escalation in Sino-Aussie tensions. Local data provided no real impetus for the space.

• Australia's flash PMI readings showed a continued uptick in the rate of expansion for both the manufacturing and services metrics, with the release noting that "not only was the Australian economic recovery sustained in December, but growth also gathered momentum as the loosening of COVID-19 restrictions underpinned further improvements in demand for goods and services. As such, private sector output expanded at the quickest pace in five months. The preliminary PMI results also brought good news regarding employment."
• November's labour market report headlines the local docket on Thursday, with participants also on the lookout for the latest MYEFO release.