Australia preliminary December PMI: Manufacturing 52.2 (prior 51.6) services 51.0 (52.8)

"The recent PMI data from Australia indicates a mixed picture for the future of the economy as manufacturing shows improvement while services slow down. This dynamic can significantly influence the RBA's interest rate policy outlook. The strength in manufacturing, driven by robust goods demand, alongside a supportive labor market, provides some optimism. Conversely, rising inflationary pressures will compel the RBA to maintain a restrictive policy stance, thus reducing downside risks for the AUD. However, the cooling growth may pose challenges for the AUD's sustained rally, especially as renewed proof of growth momentum or easing inflation abroad remains elusive. AUD's movements will likely be more influenced by external factors and global risk sentiment rather than solely domestic PMI signals."