Thanks to a drop into contractionary territory for both New Export Orders and Employment, HSBC's Flash China Manufacturing PMI missed expectations and dropped to its equal lowest 'expansionary' print in six months. Also struggling with pricing power, as the China industry minister notes the country is "clearly facing over-capacity problems," commodity currencies (and the Shanghai Composite) are getting monkey-hammered. As we noted earlier, [3] China is somewhat hamstrung in its ability to save itself this time, and further to that, the China industry minister added, "companies have no strong desire to invest."
After some 'hope' it appears, just as with GDP, that China is reverting to its expansionary-contractionary self...
[4]
but this did not play well with JPY-based carry trades in the commodity currencies...
[5]
Shanghai Composite...
[6]
Charts: Bloomberg