Flash HSBC China manufacturing PMI for June:

AUD/USD has jumped above the figure, it faces sellers sitting around 15/20 (and more at the orderboard)

  • Solid result from China on this preliminary, flash, reading.
  • Back into expansion after 5 months of contraction

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
China HSBC Flash manufacturing PMI 23 June 2014