China's November official Manufacturing PMI arrived at 50.1 (Reuters poll 49.6) vs 49.2 in October. The Non-Manufacturing PMI for the same month arrived at 52.3 vs.53 expected and 52.4 prior.
AUD/USD is attempting to correct higher in general and this data underpins the short term bullish bias.
On the hourly chart, the price is testing into resistance while the daily chart maps out the retracement path towards the 38.2% ratio as follows:
Why it matters to traders?
The monthly Manufacturing PMI is released by China Federation of Logistics and Purchasing (CFLP) on the last day of every month. The official PMI is released before the Caixin Manufacturing PMI, which makes it even more of a leading indicator, highlighting the health of the manufacturing sector, considered as the backbone of the Chinese economy. The data is of high relevance for the financial markets throughout several asset classes, given China’s influence on the global economy.
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