China Caixin Services PMI (Jun): 54.5 better than expected, bullish for AUD

China Caixin Services PMI for June have been released as follows:

•  54.5 (vs 41.4 in May).

"Overall, regional COVID outbreaks were put under control and restrictions were loosened in June, facilitating a gradual recovery in business operations," said Wang Zhe, Senior Economist at Caixin Insight Group.

"Deteriorating household income and expectations caused by a weak labour market dampened the demand recovery. Correspondingly, supportive policies should target employees, gig workers and low-income groups impacted by the outbreaks."

AUD/USD update

As per the following series of technical analyses, AUD has been in the hands of the bulls this week so far ahead of the Reserve Bank of Australia meeting:

• AUD/USD Price Analysis: The bulls could be on the verge of a move ahead of RBA
• AUD/USD Price Analysis: Bulls could be on the verge of taking over

The 0.6880s that were forecasted into the RBA have been met and the bulls have moved in on the 0.6990s with a pre-China data high of 0.6994:

• AUD/USD Price Analysis: Bulls stampede towards 0.6900 targets

 There is going to the liquidity above the 0.6900 level which could well be exploited around the RBA event. 

The price was firmly bid into the data which has failed to lift it any higher, so far. 

About the Caixin Services PMI

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.