China Caixin/S&P Global services (PMI) slides in 3rd monthly contraction
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Reuters reports that China’s services activity shrank to six-month lows in November as widening COVID containment measures weighed on demand and operations, a private-sector business survey showed on Monday, pointing to a further hit to economic growth.
The Caixin/S&P Global services purchasing managers’ index (PMI) fell to 46.7 from 48.4, marking the third monthly contraction in a row. The 50-point index mark separates growth from contraction on a monthly basis.
AUD/USD has been firm in the open and continues to print fresh bull cycle highs, testing towards 0.6850. On the daily time frame, however, support is expected in the 50% mean reversion area and lower quarter of the 0.6700s. This could be targeted in the days ahead if the bulls throw in the towel. Should the supporting trendline be broken, a move below 0.6640/50 could be a significant bearish development ahead of the critical remaining calendar events for the year that include the Reserve Bank of Australia and the Federal Reserve. On the flip side, a continuation opens risk towards September highs near 0.6920.
The Caixin Services PMI™, released by Markit Economics, 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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