Flash HSBC China manufacturing PMI for June:
- Expected 49.7
- Prior month was 49.4
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AUD/USD has jumped above the figure, it faces sellers sitting around 15/20 (and more at the orderboard)
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- Solid result from China on this preliminary, flash, reading.
- Back into expansion after 5 months of contraction
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Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:
- rebounded to a year to date high of 50.8
- The improvement was broad-based
- Both domestic orders and external demand sub-indices in expansionary territory
- Inventory reduction quickened
- Employment sub-index also showed signs of stabilization
- This month’s improvement is consistent with data suggesting that the authorities’ mini-stimulus are filtering through to the real economy. Over the next few months, infrastructure investments and relate d sectors will continue to support the recovery. We expect policy makers to continue their current path of accommodative policy stance until the recovery is sustained
