HSBC/Markit Flash reading for manufacturing PMI for February: 48.3
- expected 49.5
- prior was 49.5
- Seven month low
The response of the AUD is what is to be expected after such a dreadful result.
There are bids around 50, stops lower down.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co – He ad of Asian Economic Research at HSBC said: “ February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building – up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine – tune policy to keep growth at a steady pace in the coming year.”
Zhang Zhiwei, economist of Nomura,
“We reiterate our view that the recovery in China is not sustainable and that GDP growth will slow to 7.5% y-o-y in Q1 and 7.1% in Q2, despite favourable base effects. Considering China’s reported 2014 GDP growth target of 7.5%, we expect the government to loosen monetary policy in Q2 to support growth.”