When is China's Caixin Manufacturing PMI and how could it affect the AUD/USD?

Anil Panchal FXStreet

China Caixin Manufacturing PMI overview

Early Friday at 01:45 GMT will see China's Caixin Manufacturing Purchasing Manager's Index (PMI), which markets are forecasting to clock in at 48.5, a bit higher than the previous reading of 48.3. With the US-China trade deal still looming and a third consecutive below-50 reading by the NBS manufacturing PMI, Aussie traders will be extra-cautious of any dovetailing data coming out of China.

Analysts at Westpac say, “Most attention will be on the Caixin China manufacturing PMI, which samples smaller firms than in the official PMI. Only a small improvement is expected from Jan’s weak 48.3 headline index.”

How could it affect the AUD/USD?

The AUD/USD pair recently dived on the Daily candles thanks to uncertainty surrounding the US-China trade deal, weak data at home and also from China, Australia's largest trading partner. With the sluggish prints of NBS manufacturing PMI already has questioned Aussie buyers, any missed expectations might not stop AUD/USD from challenging the immediate support-line at 0.7085, a break of which can drag it to 0.7050 and 0.7010. Meanwhile, an overwhelmingly positive result can help the AUD/USD revisit 0.7145, 0.7180 and 0.7200 resistance levels.

Key notes

AUD/USD trades at weekly lows below 0.71 ahead of China PMI data

AUD/USD Technical Analysis: Aussie dips to 0.7100 figure

About the China Caixin PMI

The Caixin China Manufacturing PMI™ is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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