China data:
HSBC/Markit Services PMI for April, 52.9
- prior was 52.3
And the HSBC/Markit Composite PMI for April, 51.3
- prior was 51.8
Annabel Fiddes, Economist at Markit (bolding is mine though):
- The latest set of PMI data indicated that Chinese service sector companies had a strong start to Q2, with activity and new orders both rising solidly in April. However, a downturn in manufacturing operating conditions led to a weaker expansion of overall business activity in April, with composite output rising at the slowest rate in three months.
- Furthermore, sustained job shedding at manufacturing firms offset a modest rise in service sector staff numbers, leading total employment to fall for the second month in a row.
- This suggests that, despite recent stimulus measures, such as cuts to banks' reserve ratios and lending/deposit rates, more measures may be required to ensure the economy does not slow further from the 7% annual pace of growth registered in Q1.
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AUD/USD is continuing is grind higher - its on session highs now, albeit not a large range so far today: