– Antipodeans lead rally versus USD
– China’s trade surplus widens more than expected due to weak imports
– AUD building approvals rose more than expected
– More IP releases to watch across Europe today
What to watch for today
SEK: Softer IP. Consensus is for a 0.8% mom contraction in Swedish November industrial production, consistent with our economists’ expectation for a contraction in euro area production. Recent strength of the SEK can be attributed to a combination of reserve manager support and a less dovish Riksbank. However, the deterioration in growth in core Europe does not bode well for the manufacturing intensive Swedish economy and we think SEK is vulnerable at current levels.
EUR: Weak French industrial production. Our economists expect a -0.3%mom reading on the French industrial production data for the month of November. The market consensus is set for a 0.0%mom print
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