China's Caixin services PMI for July arrived at 55.5 vs. 48.0 expected and 54.5 prior, showing that the country’s services activity expanded at the fastest pace in 15 months.
July survey data signaled a further recovery in Chinese services activity amid looser pandemic restrictions and the return to more normal business conditions.
Wang Zhe, Senior Economist at Caixin Insight Group said, “Supply and demand in the services sector expanded. Although Covid restrictions hurt the businesses of some service companies, the economic fallout from this round of outbreaks was fading. Gauges for business activity and new business were both in expansionary territory in July, hitting their highest readings in 15 and nine months respectively.”
“The pandemic situation overseas restricted external demand, with the measure for new export orders in contractionary territory for the seventh straight month,” Wang added.
AUD/USD holds above 0.6900
The above-forecast print of the Chinese Services PMI helps maintain the rebound in the aussie dollar, as AUD/USD is trading at 0.6909, down 0.14% on the day, at the time of writing.
