- 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.