Chinese PMIs beat estimates but are below priors
The Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) and the official Non-manufacturing PMI, also released by China Federation of Logistics and Purchasing (CFLP), has arrived as follows:
Manufacturing Purchasing Managers Index (PMI)
50.9 (Reuters poll 50.8, prev month 51.0).
Non-manufacturing PMI
53.5 vs 55.2 in May.
AUD/USD reaction
As per the prior analysis, AUD/USD Price Analysis: Bears need to show-up at critical resistance, the price has been melting to the downside to test the monthly support:
The data has not affected this scenario with no reaction in the market so far.
About the data
The official non-manufacturing PMI, released by China Federation of Logistics and Purchasing (CFLP), is based on a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications. It's the level of a diffusion index based on surveyed purchasing managers in the services industry and if it's above 50.0 indicates industry expansion, below indicates contraction.
The Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) studies business conditions in the Chinese manufacturing sector. Any reading above 50 signals expansion, while a reading under 50 shows contraction. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
