China's NBS Manufacturing PMI contracts further to 49.2 in Oct, more pain for AUD?
The purchasing managers' index (PMI) for China's manufacturing sector unexpectedly dropped to 49.2 in October from 49.6 booked in September, the latest data published by the National Bureau of Statistics (NBS) showed Saturday.
The actual data missed the consensus estimate of 49.7 by a small margin.
Meanwhile, the Non-Manufacturing PMI fell to 52.4 in the reported month from September’s reading of 53.2 and against the expectations of 52.9.
A reading above 50 indicates expansion, while a reading below suggests contraction.
Implications for AUD/USD
Disappointing Chinese NBS PMIs could exacerbate the pain in the aussie dollar, as AUD/USD could risk a fall below 0.7500 in the big week ahead. The RBA and Fed monetary policy decisions highlight the first week of November, with Friday likely to see the critical US NFP release.
On Friday, the aussie corrected sharply from three-month peaks of 0.7556 and tested the 0.7500 barrier before rebounding modestly to finish the week at 0.7523, down 0.28% on the day.
Read: AUD/USD Weekly Forecast: The RBA and the Fed coming with surprises under their sleeves
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.
