China's Caixin Manufacturing PMI contracts to 49.2 in July vs. 50.3 expected

Dhwani Mehta FXStreet

China's Caixin Manufacturing Purchasing Managers' Index (PMI) returned to contraction, coming in at 49.2 in July as against the 50.5 reading registered in June, the latest data showed on Tuesday. The market had predicted a 50.3 expansion.

Key highlights (via Caixin)

Output contracts marginally.

Fresh fall in total sales amid steeper decline in new export orders.

Input costs and output charges decrease again.

On Monday, China’s National Bureau of Statistics (NBS) released the country’s official Manufacturing Purchasing Managers' Index (PMI), which improved to 49.3 in July as against the 49.0 contraction seen in June and the market expectations of a 49.2 figure.

AUD/USD reaction

The downbeat print of the Chinese Manufacturing PMI weighs down on the Aussie Dollar, with AUD/USD testing lows near the 0.6700 mark. The spot is trading at 0.6703, at the time of writing, down 0.25% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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