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20 Jun 2013
CNY: HSBC China PMI print comes in at 9 month lows
FXstreet.com (Barcelona) - The HSBC China PMI figure was just released, with the print coming in lighter than expected at 48.3 vs. 49.4 forecast. This is also lower than the previous month’s print which came in at 49.2
Hongbin Qu, Chief Economist, China & Co Head of Asian Economic Research at HSBC discussed some details of the release: “The HSBC China Flash Manufacturing PMI dropped to a nine-month low of 48.3 in June, following on the sequential reduction in both production and demand. Manufacturing sectors are weighed down by deteriorating external demand, moderating domestic demand and rising destocking pressures.” Qu then went on to conclude, “Beijing prefers to use reforms rather than stimulus to sustain growth. While reforms can boost long-term growth prospects, they will have a limited impact in the short term. As such we expect slightly weaker growth in 2Q”
The AUD/USD was initially trading near the 0.9280 level before the print, has declined another 40 pips and is hovering around 0.9240.
Hongbin Qu, Chief Economist, China & Co Head of Asian Economic Research at HSBC discussed some details of the release: “The HSBC China Flash Manufacturing PMI dropped to a nine-month low of 48.3 in June, following on the sequential reduction in both production and demand. Manufacturing sectors are weighed down by deteriorating external demand, moderating domestic demand and rising destocking pressures.” Qu then went on to conclude, “Beijing prefers to use reforms rather than stimulus to sustain growth. While reforms can boost long-term growth prospects, they will have a limited impact in the short term. As such we expect slightly weaker growth in 2Q”
The AUD/USD was initially trading near the 0.9280 level before the print, has declined another 40 pips and is hovering around 0.9240.