China’s factory activity picked up slightly in April suggesting that the world’s second largest economy is beginning to stabilize.
The official manufacturing purchasing managers’ index (PMI), released by the National Bureau of Statistics, crept up to 50.4 last month from 50.3 in March – rising further above the 50 line that separates expanding activity from a contraction. The reading, however, was a touch below market expectations for 50.5, according to a Reuters’ poll.
In reaction, the Australian dollar crept into positive territory to trade at $0.9284 while Australian shares erased early gains to slip 0.2 percent. Australian assets are particularly sensitive to the data given that China is its largest trading partner.