Caixin China manufacturing PMI: 51.8 vs 51.7 in October, propels AUD to session highs
- Caixin China Manufacturing PMI arrives as another beat! AUD is higher on the release.
- Follows a Manufacturing PMI print in expansion, aiding AUD higher.
The November Caixin China Manufacturing PMI (Markit, sponsored by Caixin) has been released which follows a surprise weekend Manufacturing PMI which recorded its first expansionary print in six months. The weekend data was moving back above 50, reflecting that manufacturing activity has improved from contraction to expansion sparking a bid in risk-on fx and in the Aussie.
DescriptionThe 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. |
|||||||||
Caixin China manufacturing PMI outcome
ChinaCcaixin/IHS Markit November manufacturing PMI at 51.8 (vs 51.7 in October).
FX implications
Another beat! AUD is higher on the release. Risk appetite has been elevated on the weekend data resulting in softness the yen and nice bid in AUD which was already +0.16% higher ahead of the latest data releases Meanwhile, China's economic growth has been cooling to near 30-year lows. Markets are pricing in the likelihood that Beijing will have no choice but to roll out stimulus more quickly and more aggressively. The Yuan and AUD, (a proxy to Chinese economic performance), will suffer from such sentiment.