China's Caixin Services PMI for December arrived at 48.0 vs. 47.5 expected and 46.7 prior, showing that the country’s services activity slowed its pace of contraction in the reported month.

December survey data suggested softer falls in business activity and new work.

Wang Zhe, Senior Economist at Caixin Insight Group said, “both supply and demand shrank in the sector due to Covid outbreaks, with the gauges for business activity and total new business staying below 50 for the fourth straight month in December. Nonetheless, some service companies reported that business had improved since November. The pandemic also took a toll on overseas demand as the reading for new export orders slid back into contraction.”

AUD/USD unimpressed by upbeat data

Upbeat Chinese Services PMI failed to have any positive impact on the Australian Dollar, as AUD/USD drops 0.20% on the day to test daily lows near 0.6820, as of writing.