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.


AUD/USD is continuing is grind higher - its on session highs now, albeit not a large range so far today: