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China's PPI increased for the first time since 2013

China’s consumer prices remained buoyant last month on surging food prices and factory-gate deflation moderated.The consumer-price index was at 2.3% in March from a year earlier, matching February’s level, as food prices jumped 7.6%. Producer price declines narrowed to 4.3% from a drop of 4.9% in February, and posted the first month-on-month increase since 2013. Read more...

China Services PMI posted 52.2 in March

There were no data releases from Australia this morning, however, from China, Services PMI figures were released. March survey data pointed to a modest rebound in overall Chinese business activity, driven by slightly stronger growth of services activity and a renewed expansion of manufacturing output. The stronger performance of the service sector was highlighted by the Caixin China General Services Business Activity Index posting at 52.2, up from 51.2. That said, the reading continued to point to a modest rate of expansion that was slower than the series average. Meanwhile, manufacturing output returned to growth after an 11-month sequence of stagnant or reduced production, though the rate of growth was only marginal.

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China's PMI figures beat market forecasts

Activity levels across China’s manufacturing sector expanded for the first time in eight months in March, according to a report from China’s National Bureau of Statistics (NBS). The government’s manufacturing purchasing managers index (PMI) rose 1.2 points to 50.2, marking the first expansion in activity levels seen since June 2015. It beat expectations for a smaller increase to 49.3.The vast majority of the strength was concentrated in larger firms, offsetting persistent weakness in small and medium sized enterprises.
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Aussie still supported by Yellen, RBA now in focus

There were no data releases from Australia this morning. The market is still reacting to Yellen’s speech which dampened expectations around the speed in which the Fed was going to raise interest rates. The change in expectations has meant that the AUD has become more appealing option as the higher yielding currency. However the strong AUD will now put the focus back onto the Reserve Bank of Australia’s decision next week to see if they will look to reduce interest rates in the hope of bringing the AUD down to a level they would prefer.
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