Diverging economic fortunes
• US yields. Softer US producer prices supported views inflation pressures are receding. Expectations of multiple Fed cuts in 2024 remain. US 2yr yields fell.• Stable FX. Despite the drop in US yields the USD consolidated. AUD is hovering just under ~$0.67. The RBA outlook continues to diverge from its peers.• Event radar. Offshore the China data batch, US retail sales & comments by Fed/ECB officials will be in focus. Locally, the December jobs report is due. A quiet end to last week across FX markets with the major currencies range bound on Friday. The USD Index held its ground...