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China’s  Caixin services PMI for August came in at 52.1 vs. 51.6 last, which showed that the composite business activity growth improves to a four-month high.

Meanwhile, the Composite Output Index eased to 51.6 in August from July’s reading of 50.9.

Quotes from Dr. Zhengsheng Zhong, Director of Macroeconomic  Analysis  at CEBM Group:

“The Caixin China General Services Business Activity Index rose to 52.1 in August from 51.6 in the previous month, indicating a slight improvement in the services sector.

The gauge for new business stayed in expansionary territory and edged up, while the one for new export business dropped “” although it remained in positive territory “” suggesting that domestic demand was stronger than foreign demand. The employment measure jumped notably, pointing to the sector’s strengthening capability to absorb workers.

Both gauges for input costs and prices charged by service providers moved further into expansionary territory, implying an enhanced upward trend in prices. The measure for business expectations also stayed in positive territory and moved up, reflecting companies’ increasing confidence in their prospects.”

The Aussie held the higher grounds near-weekly tops of 0.6782 on the upbeat Chinese Caixin Services PMI data, with in-line with estimates Australian Q2 GDP helping keep the sentiment buoyed.