Caixin PMI: China’s service sector activity rises more than expected

China’s Caixin Manufacturers’ PMI rose slightly to 50.8 in December from 50.7 in November, according to the latest data released on Tuesday. This data beat market expectations for a 50.4 print.

Highlights:

• Faster growth in both production and new orders

• Businesses continue to take a cautious approach to hiring.

• There continues to be little inflationary pressure.

• Both supply and demand expanded as the market continued its upward trend. This boosted production and sales. Demand for consumer goods was particularly strong, with the sub-indexes for production and total new orders reaching their highest levels 

The upside surprise in China’s manufacturing PMI lends support to the Aussie Dollar, with AUD/USD bouncing off the session lows of 0.6806 and now trading at 0.6817, up 0.08% on the day.