Caixin Manufacturing PMI: 51.7 vs expectations of 51, AUD/USD firms


  • Traders keeping an eye on Chinese data in light of recent trade war headlines.
  • AUD/USD can firm on the result with a target of 0.6930 on the Caixin-sponsored manufacturing PMI data beat.

The Oct Caixin-sponsored manufacturing PMI, which was expected around 51 following yesterday's NBS measures that showed declines in both the manufacturing and non-manufacturing measures, has arrived and beaten expectations.

Caixin Manufacturing PMI

Caixin Manufacturing PMI (Oct) Actual: 51.7 Expectations: 51 Prior: 51.4

About the Caixin China Manufacturing PMI

The Caixin China Manufacturing PMI™, released by Markit Economics, is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.

FX implications

The AUD was mixed overnight with markets trading cautiously considering the trade war headlines whereby Chinese officials are casting doubts about reaching a comprehensive long-term trade deal with the US, despite the two sides getting close to signing a “phase one” agreement. Coupled with the cancellation of the Chile summit, markets are on the lookout for worsening data from China that will only add to the downside potential in the Aussie. However, this result was at least somewhat promising and AUD/USD can firm on the result with a target of 0.6930. On the downside, Valeria Bednarik, the Chief Analyst at FXStreet explained that the bearish case will be clearer if the pair falls below 0.6840, "although it seems unlikely that such a decline would take place before US employment data."
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD advances above 1.14 after unchanged ECB, mixed US data

EUR/USD is trading above 1.14, higher after the ECB left policy unchanged and called governments to act. US retail sales beat with 7.5% while jobless claims disappointed with 1.3 million. US coronavirus figures are showing further increases in cases.

EUR/USD News

GBP/USD advances above 1.26 amid mostly upbeat US, UK data

GBP/USD is trading above 1.26, higher. The UK jobs reports showed low unemployment but also depressed wages. US retail sales beat expectations but jobless claims remain high. 

GBP/USD News

Gold trades with modest losses, downside remains limited

Gold witnessed a modest intraday pullback amid a pickup in the USD demand. The prevalent risk-off mood extended some support to the safe-haven metal. A sustained break below $1800 is needed to confirm a bearish break.

Gold News

Why is the crypto market falling today?

War for dominance impacts the market and heralds several days of turbulence. Fight between Bitcoin and Ethereum hurts the Altcoin segment, which is largely overbought after weeks of euphoria. Ripple is the most affected of the Top 3 and steps back into a high-risk environment.

Read more

WTI: 200-HMA is a tough nut to crack amid rising wedge breakdown

WTI has bounced-off lows, still sheds over 1% to trade around $40.80, as the OPEC and its allies’ (OPEC+) decision to ease output cuts from next month weighs.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures