Weaker Caixin Weighs on HK/China Equities, Keeps NZD & AUD Under Pressure

The weaker than expected Caixin PMI has reinforced established themes in the first part of the Wednesday session. Most direct impact has been seen in terms of China and HK equities. The CSI 300 erasing a gain of as much as 1%, while the HSI is down around 0.55%, close to session lows at the time of writing.

• US equity futures are weaker, although haven't reacted much to the China data, last near 0.30% for Eminis.
• The BBDXY is 0.10% higher to 1227.60/70. Yen is outperforming higher beta FX, with NZD the weakest performer at -0.60%, last near 0.5790. The earlier employment data miss weighing, while yen weakness has been tempered by a step up in official FX rhetoric. AUD/USD is down 0.20% to 0.6325.
• USD/CNH is slightly higher but remains sub 7.3400.
• Oil has drifted a little lower, WTI last near $81.10/bbl. Iron ore is down off earlier highs, last near $123.25/ton.
• US Tsys have largely looked through the Caixin PMI print.