23 Jun 2014
Chinese flash PMI up next - Westpac
FXStreet (Bali) - Rob Rennie, FX Strategist at Westpac, notes that today's main focus in Asia will be the Chinese flash PMI estimate.
Key Quotes
"Today is flash PMI day. The China HSBC flash PMI is out at 11.45am Syd/9:45am local. Despite the slight downward revision between the flash and final last month, the detail was reasonably upbeat. Last month, new orders came in above 50 and new exports above 52. New export orders were the highest since November 2010, so we should be expecting the PMI to continue to rise. Consensus is at 49.7 compared to the previous print of 49.4 with risks to the topside. New export orders in particular would imply a push towards 50."
"Japan Markit flash PMI will be released at 11:35am Syd/10:35am local. Japan faces a very weak order backlog, with the tax hikes leaving gaps in domestic demand. Inventory-to-shipments ratios for Taiwan suggest a favourable outcome for May industrial production (6pm Syd/4pm local)."
"Tonight, Eurozone June factory PMIs should be firmer following ECB policy action, despite mixed numbers from other surveys. In the US, Markit factory PMI will be released. We are expecting a decent number, given the Empire survey, though Markit has painted a different picture of the factory sector to ISM. Just before this, we also have May Chicago Fed national activity index."
Key Quotes
"Today is flash PMI day. The China HSBC flash PMI is out at 11.45am Syd/9:45am local. Despite the slight downward revision between the flash and final last month, the detail was reasonably upbeat. Last month, new orders came in above 50 and new exports above 52. New export orders were the highest since November 2010, so we should be expecting the PMI to continue to rise. Consensus is at 49.7 compared to the previous print of 49.4 with risks to the topside. New export orders in particular would imply a push towards 50."
"Japan Markit flash PMI will be released at 11:35am Syd/10:35am local. Japan faces a very weak order backlog, with the tax hikes leaving gaps in domestic demand. Inventory-to-shipments ratios for Taiwan suggest a favourable outcome for May industrial production (6pm Syd/4pm local)."
"Tonight, Eurozone June factory PMIs should be firmer following ECB policy action, despite mixed numbers from other surveys. In the US, Markit factory PMI will be released. We are expecting a decent number, given the Empire survey, though Markit has painted a different picture of the factory sector to ISM. Just before this, we also have May Chicago Fed national activity index."