China’s
official June PMIs posted a solid improvement in June as COVID
restrictions eased back in major cities. All three PMIs
(manufacturing, non-manufacturing and therefore the composite) moved
above 50 and into expansion after 3 months in contraction. A
spokesman from China’s National Bureau of Statistics (the publisher
of these official PMIs) did flag that still-subdued demand in the
economy poses a challenge to industry. Given what we are seeing these
past few days with a jump in travel interest this may well be chipped
away at in July. For now China sentiment is more positive. Of course
markets remain wary of further outbreaks and the potential for harsh
lock downs given the country’s ongoing ‘zero’ tolerance policy.
Prior
to the Chinese data release the USD had found a (small) bid almost
across the majors board but the improved data saw interest flow out
of the USD. It has not been a large move but EUR, GBP, NZD, CAD, and
especially AUD all have net gained for the session here against the
US$.
USD/JPY
has spent the session straddling 136.60.
Oil
has bounced just a little after its big shunt lower on Wednesday US
time.
