- AUD/USD is extending recovery on upbeat Caixin China Manufacturing PMI.
- The upside could be capped by the below-forecast Aussie PPI released earlier today.
AUD/USD jumped 10 pips to 0.6907, extending the recovery from the low of 0.6884 seen in the early Asian trading hours after China’s factory gauge bettered estimates.
The Caixin China Manufacturing PMI, which surveys small and medium-sized export-oriented units, came in at 51.7 for October, beating the estimated drop to 51.00 from September’s 51.4 reading.
A number above 50 indicates expansion, meaning the factory activity grew at a faster pace in October.
Hence, it’s no surprise that the AUD, a proxy for China, extended gains following the PMI release.
The Caixin data has come a day after the government PMI showed factory activity shrank for a sixth straight month in October and growth in the service sector fell to lowest since February 2016.
Also, Australia reported a below-forecast third-quarter Producer Price Index at 00:30 GMT.
As a result, the upside in the AUD could be limited. As of writing, the pair is trading at 0.6903.
Technical levels
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