China's Caixin/ S&P Global Manufacturing PMI contracts to 49.5 in August vs. 50.2 expected
China's Caixin/ S&P Global Maufacturing PMI for August arrived at 49.5 vs. 50.2 expected and 50.4 previous, showing that the country’s manufacturing sector activity returned to contraction.
The survey data signaled a downturn, as power cuts weigh on manufacturing sector performance in August.
Wang Zhe, Senior Economist at Caixin Insight Group said, “A resurgence of Covid-19 infections, coupled with a prolonged heat wave, weighed on the manufacturing sector.”
“Manufacturing supply expanded while demand shrank. Although output increased for the third successive month, the rate of expansion was marginal due chiefly to power cuts caused by the heat wave, Wang added.
AUD/USD attacks 0.6800
The downbeat print of the Chinese Manufacturing PMI renders negative for the aussie dollar, as AUD/USD is trading at 0.6808, down 0.44% on the day, at the time of writing.
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.
