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Caixin PMI Beat Aids China Related Asset Sentiment

CHINA DATA

The Caixin manufacturing PMI surprised the market printing at 50.9 versus 49.5 expected (49.5 was also the prior outcome). This is the first positive data surprise from China in a little while, and comes after yesterday's disappointing official PMI results for May.

  • The market reaction has been positive in China related assets. USD/CNH is tracking lower, last near 7.1050 (-0.20% for the session). AUD/USD is also firmer, back above 0.6500, last 0.6505/10, NZD/USD has also recovered from lows, last near 0.6020.
  • We are seeing spill over to other USD/Asia pairs, 1 month USD/KRW back to 1316/17, USD/THB down to 34.60/65.
  • Hong Kong equities are also rallying, the headline index up 1%, the tech sub index +2%.

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