Australian dollar, china caixin service purchasing managers index talking points:
China’s caixin march service pmi hit 43.0, well above the previous month’s 26.5
This strong performance mirrors the official pmi series already released
Aud ticked up, but market risk sentiment remains extremely fragile
The australian dollar made modest gains friday on news that china’s private service sector saw a big march bounce in activity even if overall output continued to fall.
The march purchasing managers index from media group caixin came in at 43.0, hugely above both the 29.0 print expected and february’s miserable record low of 26.5. Pmi releases indicate output expansion if they come in above the 50 line.
These data mirror the remarkable return to expansion territory seen by the private manufacturing sector and, perhaps more importantly, state-linked heavy industry last month. Taken together with the caixin manufacturing release, the march composite pmi is 46.7, above february’s 27.5.