The positive market reaction to the earlier Caixin services PMI beat (51.5 versus 50.5 forecast) has proven to be fleeting. USD/CNH dipped back to 7.1465, but is now back above the 7.1500 level. Recent highs come in around the 7.1550/70 region, which could be targeted on any further upside extension.

  • China and Hong Kong remain under pressure. The HSI is off over 1% and close to session lows. The CSI 300 index is off around 0.70%, this is after closing at fresh lows back to 2019 yesterday. The real estate sub index continues to track lower, off a further 1.25% in the first part of trade.
  • 1 month USD/KRW has been supported on dips, last near 1309/10, testing Monday session highs.
  • Elsewhere, AUD/USD is lower back to 0.6610, with earlier current account data disappointing. It is the weakest performer in the G10 space.

CHINA: Caixin Services PMI Doesn't Shift Negative China Equity Backdrop

Last updated at:Dec-05 02:22By: Jonathan Cavenagh

The positive market reaction to the earlier Caixin services PMI beat (51.5 versus 50.5 forecast) has proven to be fleeting. USD/CNH dipped back to 7.1465, but is now back above the 7.1500 level. Recent highs come in around the 7.1550/70 region, which could be targeted on any further upside extension.

  • China and Hong Kong remain under pressure. The HSI is off over 1% and close to session lows. The CSI 300 index is off around 0.70%, this is after closing at fresh lows back to 2019 yesterday. The real estate sub index continues to track lower, off a further 1.25% in the first part of trade.
  • 1 month USD/KRW has been supported on dips, last near 1309/10, testing Monday session highs.
  • Elsewhere, AUD/USD is lower back to 0.6610, with earlier current account data disappointing. It is the weakest performer in the G10 space.

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