China’s PMI index likely to have dropped in May

On a year-on-year basis, China’s economy expanded 6.9 percent in the March quarter. In the coming week, certain indications for how the second quarter is shaping up will be released with an early indication of business activity in May. China’s PMI measure is expected to have dropped in May from the prior month’s print.

This measure had been trending higher; however, it gave up some ground in April. However, the measure continues to be above the 50 line of demarcation and as such is in line with a modest rate of growth. According to consensus expectations, the PMI index is expected to have dropped to 51 in May from April’s 51.2.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Chinese yuan was bearish at -97.0327, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 43.1375. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex