Economic calendar in Asia Monday, 6 May 2024

The services and composite PMI from Caixin in China will wrap up the April PMIs from China. Earlier:

• China April 2024 Official Manufacturing PMI 50.4 (expected 50.3) Services 51.2 (exp 52.2)

• China April Caixin manufacturing PMI 51.4 (expected 51.0)

All solidly in expansion, the same is expected from the data today.

***

China has two primary Purchasing Managers’ Index (PMI) surveys – the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.

• The official PMI survey covers large and state-owned companies, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China’s private sector.
• Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey.
• Despite these differences, the two surveys often provide similar readings on China’s manufacturing sector.

***

From Australia we have the first indication of April monthly inflation data. The official (March and Q1) CPI data from Australia we had published a couple of weeks ago confirmed sticky high levels that’ll ensure the RBA remains on hold for many months to come.

The RBA meet today and tomorrow, previews:

• RBA meeting next week – preview – Cash rate to remain unchanged

This article was written by Eamonn Sheridan at www.forexlive.com.