DAILY CURRENCY OUTLOOK

* AUD pushes higher against all major currencies
* Focus on US data tonight/tomorrow
* Best wishes for Christmas and Happy New Year

In a sea of green, the AUD opens this morning slightly higher against all major currencies. Against the USD, the Aussie climbed slowly through the night from its close of 0.6671 to a high of 0.6725 before drifting off. Trading was relatively light, and with no economic data yesterday or overnight, the Aussie recovered some of its losses from late Tuesday. The main factors driving the Aussie lower on Tuesday were the release of the RBA minutes (from the 6^th Dec. meeting) and a report from the World Bank forecasting a lower GDP outlook for China in 2023. The RBA minutes revealed the Board considered all options regarding the cash rate – a pause, a 25-basis point hike or a larger 50bps hike. The decision to go with the more moderate 25bps hike was made on the wait and see approach (as to the lag effect of previous hikes) and that any course change would create uncertainty. Markets sold the Aussie due to the consideration of a possible pause. With little data remaining for the year, we will likely continue to see more choppy trading in the coming weeks.

Please note this is our last Daily Currency Outlook for the year – we will be back week of 9 January!