China's June PMI beats expectations, drives AUD higher

China's manufacturing PMI for the month of June came at 51.7 vs 51.0 expected and 51.2 last, while China non-manufacturing PMI for June was 54.9 vs 54.5 last. The data is seen as a positive input for the Australian Dollar, which has just broken above 0.77 resistance line against the US Dollar. The reading suggests a pick up in activity in Australia's number one trading partner, at a time of ebullient market sentiment, amidst a major coordinated shift in central bank rhetoric into a more clear hawkish narrative. As part of this shift towards a normalization of monetary policies, speculation is that even the RBA may soon start considering a rate hiking cycle in line with the rest of Central Banks.