China PMI: Manufacturing, Services PMI both miss estimates, AUD exposed to short-side risks

Joshua Gibson FXStreet

Chinese Manufacturing and Services PMI came in at a miss, and market reaction looks set to send the Aussie lower for it.

China Manufacturing PMI in at 50.3, forecast was for 51.2, previous figure 51.3.
China Services PMI in at 54.4, forecast 55.0, previous figure 55.3.

Both PMIs came in lower than forecasts and with Manufacturing PMI barely hanging on to growth balance (sub-50 figure implies economic contraction), the Aussie can expect to get punished as markets trade the knock-on effects of an economic miss for Australia's largest trading partner, China.

Market analysts were anticipating a contraction in figures, but a wider-than-expected miss will pull some itchy short triggers.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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