Australia Services PMI Returns to Expansion at 50.5 After Trade Shock

Australia's June services PMI was revised up to 50.5, moving back into expansion territory after May's contraction. This follows a sharp deterioration in May trade data, which posted a AUD3,018 million deficit against expectations for a surplus, driven by a 6.9% drop in exports. Earlier in the period, manufacturing PMI reached a five-month high of 51.5 while building permits fell 1.1% month-over-month, missing forecasts. The services rebound offers a modest positive signal for growth but is unlikely to offset downside pressure on the Australia 200 from weaker external balances.