China's Caixin Services PMI unexpectedly rises to 54.1 in July vs. 52.5 expected

China's Services Purchasing Managers' Index (PMI) rose to 54.1 in July, compared with a 53.9 expansion seen in June, the latest data published by Caixin showed on Thursday. The gauge was expected to drop to 52.5 in the reported month.

Key points

Commenting on the China General Services PMI ™ data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group said: “Both service supply and demand continued to expand in July. Market conditions in the sector kept improving, business activities further increased, and demand expanded accordingly. The readings for business activity and new business have both stayed above 50 for the seventh consecutive month.”

“But growth in external demand has slowed significantly, with the gauge for new export business only slightly higher than 50. Surveyed companies said that the economic outlook overseas was unclear, which had limited service exports,” Wang added.

AUD/USD reaction

Upbeat Chinese Services PMI renders positive for the Aussie Dollar, lifting AUD/USD back above 0.6550. The major is trading at 0.6552, at the time of writing, up 0.20% on the day.