China's Manufacturing PMI data provided by the government came out for May.

50.4, forecast 52.2, previous 53.3

Source: Bloomberg

Although it stayed above the 50 level, which technically, but barely shows expansion, this is the sharpest fall in 28 months according to Bloomberg's chart above also shows the sharp slide.

The HSBC version of this came out last week, and has been showing contraction, which was diverging from what the government's numbers were showing. It showed a reading of 48.7 down from 49.3. This month's government data thus brings back some convergence of data into the direction of contraction.

Which ever way you look at it, recent data from China has been piling on the fact that it is slowing down.

The market traded throughout the Asian-European session with risk-aversion pushing the USD and JPY higher.

The EUR/USD was held under 1.2370 and fell to new lows hovering just above the 1.23 level ahead of the NFP.

The AUD/USD was held under 0.97 and fell through the 0.9660 pivot and is near 0.9630 ahead of the NFP. (China's poor data should have more drag on the Aussie due to Australia's direct trading relationship with China).