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Muted Market Reaction To Official Chinese PMIs

CROSS ASSET

Official Chinese PMI data isn’t quite as soft as expected, with both the manufacturing and non-manufacturing readings providing a slightly more measured rate of contraction vs. median expectations. This has allowed the Chinese NBS to suggest that the data shows that “economic sentiment improved in May.” Still, there hasn’t been anything in the way of meaningful market reaction in wider asset classes, with USD/CNH currently ~50 pips below pre-release levels. The previously outlined Tsy/Fed pricing driven market removes remain at the fore in Asia-Pac dealing.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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