A$ Hit By Weaker China PMI Data, Fed Minutes Later

AUDUSD has fallen on weaker-than-expected China PMI data. It had approached 0.6700 earlier in the session reaching a high of 0.6698 but is now down 0.1% to 0.6683, close to the low of 0.6680. The China PMIs boosted the greenback with the USD index now 0.1% higher.

• The composite Caixin PMI for June fell to 52.5 from 55.6 driven by a sharp weakening in services activity to 53.9 from 57.1 in May, significantly weaker than the 56.2 expected.
• Aussie has lost ground against the major crosses too since the China data. AUDJPY is down slightly to 96.63. AUDNZD is 0.2% lower at 1.0791; the pair has traded below 1.08 for most of this session. AUDEUR and AUDGBP are both down 0.1% to 0.6144 and 0.5260 respectively.
• Equities are generally weaker across the region after the US was closed on Tuesday. The ASX is down 0.3%, the Hang Seng -1.2% but Jakarta is up 0.2%. S&P e-minis are flat. Brent oil prices are down 0.6% to $75.82/bbl after rising 2% yesterday. Copper is also lower by 0.6% and iron ore is holding above $110/t.
• Later the FOMC June meeting minutes are published and the Fed’s Williams speaks. European/UK services/composite PMIs for June and May US factory orders print. On Thursday, Australia’s May trade data are released.