Australian preliminary December PMI: Manufacturing 50.4 (prior 51.3), services 46.9 (47.6)

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Australian preliminary December PMI: Manufacturing 50.4 (prior 51.3), services 46.9 (47.6)

<p>Flash Australian PMIs for December 2022 from S&P Global /Markit</p><p>manufacturing 50.4</p><ul><li>prior 51.3</li></ul><p>services 469.9</p><ul><li>prior 47.6</li></ul><p>composite 47.3</p><ul><li>prior 48.0</li></ul><p>more to come</p><p>You may be tempted to view this poor data as a case for a halt to Reserve Bank of Australia rate hikes. I urge care with this conclusion. Inflation in Australia is way, way above the 2 to 3% target band which means the RBA still has a job to do bring the CPI down.</p><p>Yesterday's employment data was strong indeed, at least the RBA has had some success on this leg of their dual mandate:</p><ul><li><a href="https://www.forexlive.com/news/australian-jobs-data-unemployment-rate-for-november-34-vs-34-expected-20221215/" target="_blank" rel="follow" data-article-link="true">Australian jobs data - unemployment rate for November 3.4% vs. 3.4% expected</a></li></ul><p>The RBA next meet on February 7. I expect another 25bp rate hike then. </p><p>---</p><p>The rate hike path from the RBA so far:</p>

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Australian preliminary December PMI: Manufacturing 50.4 (prior 51.3), services 46.9 (47.6)

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