China PMIs beat expectations but remain below 50, AUD/USD is hamstrung

The China PMIs, Manufacturing & Services, have been released as follows:

NBS Manufacturing PMI(May) 

Stronger than expected but contracts: 49.6 VS 47.4 for April.

Non-Manufacturing PMI(May) 

Stronger than expected and rises: 47.8 VS 41.9 in April. 

Both PMIs were expected to remain in contraction despite the partial easing in lockdown measures, although this will help reduce some negative sentiment in manufacturing.

''Weaker export trends, lacklustre demand for loans, and soft infrastructure spending suggest manufacturing will not move back to expansion quickly,'' analysts at TD Securities argued. ''Services recovery is likely to be even slower amid constrained consumer activity.''

AUD/USD update

AUD/USD is attempting to correct higher but the data is still in negative territory and the bulls are struggling. 

About the official Non-Manufacturing & Manufacturing PMIs

These data are released by China Federation of Logistics and Purchasing (CFLP), is based on a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications. It's the level of a diffusion index based on surveyed purchasing managers in the services industry and if it's above 50.0 indicates industry expansion, below indicates contraction.