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  • AUD/USD extends decline by 10 pips as China’s Caixin PMI missed estimates by a big margin.
  • Both government and private PMIs have missed estimated, suggesting more pain in store for China’s economy.

A gauge of China’s manufacturing activity, which primarily surveys small and medium-sized export oriented units missed estimates, sending the already weak Aussie dollar to fresh session lows.

Caixin Manufacturing PMI (Apr) printed at 50.2, missing the estimated rise to 51.00 from the preceding month’s print of 50.8 by a big margin.

Earlier today, China’s National Bureau of Statistics published its own survey, showing the manufacturing activity barely expanded in April.

The below-forecast private and official PMI numbers indicate that China’s economy isn’t out of the woods yet.

As a result, the Aussie dollar – a proxy for China – may remain under pressure during the day ahead. The AUD/USD pair fell 30 pips post the release of the NBS PMI and extended losses by another 10 pips to hit a session low of 0.7033 following the release of the Caixin PMI Manufacturing at 01:45 GMT.

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