China's Caixin/ S&P Global services PMI for August arrived at 55.0 vs. 55.5 prior, showing that the country’s services activity growth slowed in the reported month.
August survey data suggested that the upturn was supported by a solid rise in overall sales, as companies reported higher customer numbers as market conditions continued to normalize.
Wang Zhe, Senior Economist at Caixin Insight Group said, “The service sector’s recovery from a widespread outbreak of Covid-19 earlier in the year continued in spite of new flare-ups.”
"Both supply and demand in the sector expanded. The services PMI and the gauge for total new business fell slightly from July but stayed well above 50. Although some firms mentioned that the recent Covid outbreaks affected their operations, the majority reported that business improved. By comparison, new export business fell for the eighth straight month as the pandemic continued to weigh on overseas demand.,” Wang added.
AUD/USD drops below 0.6800
The weak print of the Chinese Services PMI added to the weight on the aussie dollar, as AUD/USD is trading at 0.6784, down 0.32% on the day, at the time of writing.