China's Caixin Manufacturing PMI contracts to 49.4 in April vs. 50.1 last, Aussie unfazed
|China's December Caixin manufacturing PMI came in at 49.4 vs. 50.1 last, showing operating conditions deteriorate slightly as COVID-19 pandemic weighs on demand.
Earlier today, the purchasing managers' index (PMI) for China's manufacturing sector arrived at 50.8 in April, the National Bureau of Statistics (NBS) reported.
Summary
“After broadly stabilising in March, operating conditions across China's manufacturing sector weakened slightly in April. The recent easing of measures to halt the spread of the coronavirus disease 2019 (COVID-19) pandemic underpinned a further rise in output.
However, the impact of the virus globally led to a substantial drop in export sales, which drove a further decline in total new work. Weaker demand conditions prompted firms to reduce their staff numbers and input buying. At the same time, companies reported moderate falls in both input costs and selling prices.
The said, the decline was marginal and much softer than the record pace seen in February when many firms closed down to stem the spread of the virus. Chinese manufacturers signalled a back-to-back month.”
FX implications
The aussie dollar was little moved by the dismal Chinese Manufacturing data, as AUD/USD kept losses below 0.6550, down 0.25% so far.
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