China's Services Purchasing Managers' Index (PMI) tumbles to 53.9 in June, compared with a 57.1 expansion seen in May, according to the latest data published by Caixin released on Wednesday.

Key points

Commenting on the China General Services PMI ™ data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group said: “Both services supply and demand expanded further in June, but at a slower pace. The gauges for business activity and total new orders both stayed above 50 for the sixth consecutive month, but logged their lowest readings since January and December, respectively, as the services market saw a weaker-than-expected recovery.”

“External demand remained relatively stable as the lifting of travel restrictions boosted services exports, with the measure for new export orders staying in expansionary territory for the sixth month in a row,” Wang added.

AUD/USD reaction

Weak Chinese Services PMI bodes ill for the Aussie Dollar, dragging AUD/USD 15 pips below 0.6700. The major is trading at 0.6685, at the time of writing, down 0.07% on the day.