Chinese PMIs miss the mark, AUD steady

Ross J Burland FXStreet

The Chinese Manufacturing PMI and Manufacturing PMI for August has been released.

The data arrived as follows:

Chinese Manufacturing PMI Aug: 50.1 (exp 50.2; prev 50.4).
Non-Manufacturing PMI Aug: 47.5 (exp 52.0; prev 53.3) - Composite PMI Aug: 48.9 (prev 52.4).
Composite PMI at 48.9.

AUD/USD was unchanged in Asia on the data, sitting flat at 0.7290 between 0.7288/03 the range.

Longer-term, AUD/USD is attempting to stablise on USD weakness as follows:

Why the data matters to traders

The monthly Non-manufacturing and manufacturing PMIs are released by the 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.

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.

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