China data

Flash (i.e. preliminary) figure for HSBC Manufacturing PMI: 49.2

  • expected 49.6
  • prior was 49.6

A 12 month low for this flash reading

Annabel Fiddes, Economist at Markit:

  • Operating conditions in China's manufacturing sector deteriorated slightly for the second month running in April, with the flash reading of the PMI falling to a oneyear low
  • Production increased only marginally, while total new business declined for the second successive month
  • Relatively weak demand conditions were also highlighted by stronger deflationary pressures in the sector, with both input and output prices falling at faster rates
  • Meanwhile, job shedding across manufacturing firms was recorded for the eighteenth month in a row
  • On a brighter note, demand from overseas improved in April, with new export work rising for the first time in three months

-

Another negative impact for the AUD and NZD. AUD has found some buying at 0.7720 to hold it 9at least for now), while the NZD got a bit below 0.7575. Having said this, both are a better bet for a sell on rallies for today