China Caixin Manufacturing PMI overview
Early Monday at 01:45 GMT will see China's Caixin Manufacturing Purchasing Managers Index (PMI), which markets are forecasting to clock in at 50.00, a bit lower than the previous readout of 50.2. Given the side effects of the US-China trade affair and disappointments from China’s official NBS manufacturing PMI, Aussie traders will be extra-cautious of any dovetailing data coming out of China.
How could it affect the AUD/USD?
The AUD/USD pair is recovering on the daily candles thanks to the overall weakness of the US Dollar (USD). However, Aussie gains are under pressure from the pessimism surrounding the trade environment between the US and China. It should also be noted that the sluggish prints of NBS manufacturing PMI already has questioned Aussie buyers and may recall latest lows around 0.6860 with 0.6900 being immediate support if data disappoints. Meanwhile, an overwhelmingly positive result can help the quote to cross 0.6950 immediate resistance and run up towards 0.7000 and 50-day simple moving average (SMA) level of 0.7025.
Key Notes
AUD/USD traders await China’s Caixin PMI while observing trade woes
AUD/USD Analysis: neutral despite China and ahead of the RBA
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.
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