China Caixin Services PMI big beat, highest in over a decade at 58.4 vs 55.0 in May

The China's June Caixin/Markit services PMI rises to 58.4 (vs 55.0 in May), which is the highest in over a decade.

China Caixin Services PMI

China's June Caixin/Markit services PMI rises to 58.4 (vs 55.0 in May).
New business for China services firms expands at the fastest pace in 10 years, but employment falls for a fifth straight month.

China's services sector expanded at the fastest pace in over a decade in June as the easing of coronavirus-related lockdown measures revised consumer demand, a private survey showed on Friday, though companies continued to shed jobs.

The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 58.4, the highest reading since April 2010, from May's 55.0, pulling further away from the trough hit in February as the coronavirus lockdown paralysed the economy.

The 50-mark separates growth from contraction on a monthly basis,

Reuters explained.

Full report

The data follows the earlier release in the week of the Caixin/Markit manufacturing Purchasing Manager’s Index which came in at 51.2, beating expectations.

The PMI readings above 50 indicate expansion, while those below that level signal contraction.

While overall manufacturing demand recovered at a fast clip, overseas demand remained a drag, said Wang Zhe, a senior economist at Caixin Insight Group.

AUD/USD outlook

After an initial small pip spike, AUD/USD is unchanged on the data, travelling sideways into holiday thin market conditions. 

At the time of writing, AUD/USD is flat on the session at 0.6922, still easing from its highs of 0.6931.

Meanwhile, the ASX 200 Index was trading 6032 pre-market and bid following Wall Street surging on a record payrolls jump. at the time of writing, The index is up 0.9% and has rallied from a low of 6087 to a high of 6110, the highest levels since the start of June.

Description of the Caixin Services PMI

The Caixin Services PMI™ is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy.

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