Caixin Manufacturing PMI overview
China’s Caixin Manufacturing PMI, due early Monday at 01:45 GMT, is expected to come in at just 51.0 for June, compared to the previous reading of 51.1. China has been seeing a bit of a slump in key manufacturing figures, and over the weekend, the NBS Manufacturing PMI printed at 51.5 (forecast 51.6, prev. 51.9). A continuation of declining manufacturing figures for China could cast doubt on the country’s ability to maintain economic growth, further dampening investor sentiment in Asia, which is already battered by the ongoing US-China trade showdown that has seen little in the way of peaceful solutions.
How could it affect the AUD/USD?
The Aussie bounced last Friday as the Greenback took a breather, but the bullish move is already seeing hesitation as the pair backs into the 0.7400 key level in early week trading. Last week’s drop into fresh 2018 lows has established key barriers on both sides of the current price action, and a continued miss for China PMIs could see the AUD/USD end the bullish bounce early and slip back into lows near 0.7325, while a surprise jump into the green will have the pair challenging last week’s starting high of 0.7440.
Key notes
Aussie tied to Chinese data and risk sentiment
About the Caixin Manufacturing PMI
The Caixin China Manufacturing PMIâ„¢ is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.
Share
