China’s official June PMIs posted a solid improvement in June as COVID restrictions eased back in major cities. All three PMIs (manufacturing, non-manufacturing and therefore the composite) moved above 50 and into expansion after 3 months in contraction. A spokesman from China’s National Bureau of Statistics (the publisher of these official PMIs) did flag that still-subdued demand in the economy poses a challenge to industry. Given what we are seeing these past few days with a jump in travel interest this may well be chipped away at in July. For now China sentiment is more positive. Of course markets remain wary of further outbreaks and the potential for harsh lock downs given the country's ongoing ‘zero’ tolerance policy.

Prior to the Chinese data release the USD had found a (small) bid almost across the majors board but the improved data saw interest flow out of the USD. It has not been a large move but EUR, GBP, NZD, CAD, and especially AUD all have net gained for the session here against the US$.

USD/JPY has spent the session straddling 136.60.

Oil has bounced just a little after its big shunt lower on Wednesday US time.

audusd wrap 30 June 2022