Market sentiment dwindles as China-linked optimism battles with recession fears amid light calendar and holiday mood.PBOC is likely to keep benchmark interest unchanged at 3.65%.
AUD/USD grinds near the 0.6700 threshold as bulls keep the reins despite showing minor moves ahead of the key events on Tuesday. The Aussie pair began the week on a firmer footing amid a softer US Dollar and upbeat headlines from China but pared some gains as equities dropped and yields rose. However, the buyers are in the driver’s seat as markets braces for the latest Monetary Policy Meeting Minutes from the Reserve Bank of Australia and the Interest Rate Decision from the People’s Bank of China . began the week on a back foot as downbeat US PMIs for December raised doubts about the US Federal Reserve’s hawkish bias.