July Chinese manufacturing PMI was anticipated to edge up to 49.6 but to remain below 50 for the 3rd month while the non-manufacturing PMI likely declined from 54.5. The data has arrived mostly in line with expectations but is key for the AUD/USD today ahead of the Federal Reserve and the Aussie Consumer Price Index. New orders, overseas sales and output all declined in previous months amid a persistent trade dispute with the US so there were no optistic expecations for the data.
The data has arrived as follows:
- NBS Manufacturing 49.7 vs expected 49.6 and 49.4 prior.
- Non-Manufacturing 53.7 vs expected 54.5 expected and 54.2 prior.
Indeed, the manufacturing print has come in below the 50 watermark which leaves the industry in contraction.
About the Manufacturing Purchasing Managers Index (PMI)
The Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) studies business conditions in the Chinese manufacturing sector. Any reading above 50 signals expansion, while a reading under 50 shows contraction. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market.
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