On the weekend we got China’s official purchasing managers’ index (PMI) for May: 50.8 (vs. 50.7 expected).

Some more detail:

Expanding were:

  • Output, New Orders, Purchases of Inputs

While there was contraction in:

  • New Export Orders, Stocks of Finished Goods, Backlogs of Orders, Imports, Stocks of Major Inputs

Input Prices were unchanged, Suppliers’ Delivery was faster

On the improve:

-

The better PMI should be a net positive input for the AUD.