China PMIs beat expectations, supporting AUD/USD into resistance
|AUD/USD is a touch higher as China's March Official PMI Manufacturing arrived at 51.9 vs. the expected 51.5 while Services came in at 58.2 vs. the expected 54.3.
- Chinese composite PMI actual 57.0 (forecast -, previous 56.4).
AUD/USD update
The Australian Dollar edged higher on Friday as banking fears calmed a little, while bonds were boasting their best month in a decade after expectations for rate hikes were reined in. The Chinese data has helped to keep the bid alive and the price is moving firmer into resistance as the following illustrates:
AUD/USD daily chart
However, overall, the bears are in the market near a structure point that was broken earlier in the month that has been acting as resistance ever since. As a result, a bearish pennant has been carved out on the daily chart and traders are on the lookout for an explosive breakout of the coiled market conditions with 0.65 eyed:
About the data
The monthly manufacturing PMI is released by China Federation of Logistics and Purchasing (CFLP) on the last day of every month. The official PMI is released before the Caixin Manufacturing PMI, which makes it even more of a leading indicator, highlighting the health of the manufacturing sector, considered as the backbone of the Chinese economy. The data is of high relevance for the financial markets throughout several asset classes, given China’s influence on the global economy.
China Federation of Logistics and Purchasing (CFLP) publishes the non-manufacturing PMI on a monthly basis. The gauge highlights the performance of China’s service sector, which has a significant impact on the global FX market, given the size of the Chinese economy. An expansion in the Chinese service sector activity points to signs of economic improvement and vice-versa.
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