Dollar pulled back after weak retail sales data overnight and stayed in range after Fed's Beige Book report. The report noted "modest" or "moderate" growth across most of the 12 districts during the survey period. Employment "expanded moderately" across "a variety of sectors". However, similar to what the non-farm payroll indicated, wage was stagnant for most workers except those with specialized technical skills. Meanwhile, Dallas reported that hiring freezes and layoffs by some energy firms. Overall, the report suggested that the economy would continue to have moderate growth over the coming months.
Aussie recovered mildly in Asian session after solid employment data. The job market grew 37.4k in December versus expectation of 5.3k. In particular, full-time job grew 41.6k and offset the contraction 4.2k contraction in part time jobs. The participation rate also rose from 64.7% to 64.8%. Unemployment rate dropped to 6.1% versus expectation of 6.3%. However, economists noted that such stellar growth in employment wouldn't be able to sustain due to slow down in the economy. Some expected unemployment rate to climb again and peak at around 6.6% in Q2.
Elsewhere, Japan domestic CGPI rose 1.9% yoy in December, machine orders rose 1.3% mom in November. Both were below expectation. UK RICS house price balance dropped to 11 in December. Eurozone will release trade balance later today. Economic calendar in US is rather busy with PPI, Empire State and Philly Fed manufacturing, as well as jobless claims featured.