Today the PBOC cut its Reserve Requirement Ratio by 0.5% to 19.5% in efforts to stimulate a slowing economy. The decision aims at boosting liquidity by increasing the amount of loanable funds to Chinese businesses, agriculture-related ones in particular. Recent economic reports reflected the grim picture of the manufacturing and industrial sector which have been suffering due to the aching global demand. The news came after an upbeat trading session in Asian markets following the rebound of copper and oil prices.
Investors will likely focus on the ADP employment data, which is the first of three releases on the job situation. Additionally, the session will see the release of the Non-Manufacturing PMI report.