The Caixin China Manufacturing PMI™, released by Markit Economics, has arrived as follows:
July manufacturing PMI at 50.3 (vs 51.3 in June) - Reuters news.
''China's factory activity growth slipped sharply in July as demand contracted for the first time in over a year in part on high product prices, a business survey showed on Monday, underscoring challenges facing the world's manufacturing hub.''
''Analysts polled by Reuters had expected the index to ease to 51.1. The 50-mark separates growth from contraction on a monthly basis.''
''The Chinese economy has largely recovered from disruptions caused by the coronavirus pandemic, but it has faced new challenges in recent months such as higher raw material costs, which dragged on profit growth at industrial firms in June.''
AUD/USD is sliding to fresh lows for the day at 0.7334.
As per prior analysis into the day, the price is behaving as forecasted:
Hourly chart, pre-data analysis
''...a break of hourly support could be enough to trigger the downside:
A illustrated, the price is capped by resistance and the confluence of the 38.2% Fibo, reached, and the bearish 10-EMA.
A break of the dynamic support and the latest hourly lows at 0.7341 could lead to a downside hourly continuation for a fresh low in the 0.7320s.''
Live price action post-event:
About Caixin China Manufacturing PMI
The Caixin China Manufacturing PMI™, released by Markit Economics, is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.
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