China manufacturing PMI lowest in 3 years

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by Chris Becker

The hits keep coming for those wedded to a strong China forever. The official manufacturing PMI print came out this morning at 49.7, the first move into contraction in six months. Non manufacturing PMI was at 53.4, slightly off the last print.

Later this afternoon we get the Caixin manufacturing and services print, which is somewhat broader and more representative that should reinforce this result, with expectations of a low 47 result. Here’s the longer term chart where you can see China’s rebalance writ large:

caixin

The Aussie dollar is gravitating around the 71 cent mark but building approvals and then of course, the RBA meeting later this afternoon should weigh more here:

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