CHINA: Bond Futures Stay Calm as Markets Return from Leave. 

Aussie is stronger today helped by better risk appetite and softer CNH trends. AUDUSD is up 0.2% to 0.6226, off the intraday high of 0.6240. It fell to 0.6208 early in today’s trading. The USD index is off its low to be little changed.

• With the better risk tone, AUDNZD is up only 0.1% to 1.1082. However, AUDJPY is 0.4% higher at 98.17, close to the intraday high of 98.30. AUDEUR is up 0.2% to 0.6040 and AUDGBP +0.1% to 0.5008 after falling briefly below 0.5000 early in the session.
• The final December S&P Global composite PMI was revised up 0.3pp to 50.2, the third straight month at this level and signalling only slight growth in activity which is being driven by the services sector. The services PMI was revised up 0.4pp to 50.8 to be 0.3pp higher than November.
• Equities are mixed with the ASX up 0.1% and Hang Seng/CSI flat but Nikkei down 1.1% as it catches up after being closed several days. The S&P e-mini is 0.1% lower. Oil prices continue to climb with WTI +0.3% to $74.18/bbl. Copper is up 0.2% and iron ore has given up gains to be back around $99/t.
• Later the Fed’s Cook speaks. US & European December services/composite PMIs and preliminary December German CPI data are released.  

• CHINA PBOC CONDUCTS CNY14.1 BLN VIA 7-DAY REVERSE REPOS MON

Headlines have crossed from the Globe and Mail that Canadian PM Trudeau will resign this week. The reports note that the resignation could happen later today, but that it is expected to happen before a national caucus meeting on Wednesday (see this BBG link for more details).