China official PMIs for January are in. Markets were expecting 50.0 on the manufacturing index and 53.5 on services. Risks of a surprise were sure to be to the downside into the event considering the impact of coronavirus will be closely assessed in the coming months following the end of lunar new year holidays.
However, if anything, the data was an improvement and a pleasant surprise. This was actually conducted before some of the recent heightened coronavirus scares – Chinese State Bureau: The PMI survey was conducted before Jan 20 meaning the impact of the coronavirus is not fully shown.
Meanwhile, the data arrived as follows:
Chinese data dump
- China January official services PMI rises to 54.1 vs December 53.5.
- China January official manufacturing PMI at 50.0 (Reuters poll 50.0) vs 50.2 in December.
- Composite at 53 vs 53.4 prior.
AUD/USD price analysis
Before the event: AUD/USD Price Analysis: Chinese data-dump to risk the pair lower?
After the event: The reaction to the Chinese data has been muted and AUD/USD, which trades as a proxy to the data, has only moved a few pips higher on the data but has marked a fresh high of 0.6729, so far.
Description
The Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) studies business conditions in the Chinese manufacturing sector. Any reading above 50 signals expansion, while a reading under 50 shows contraction. As the Chinese economy has an influence on the global economy, this economic indicator would have an impact on the Forex market.
China's National Health Commission official figures
- Confirmed cases 9,692.
- 1,982 new cases were confirmed for January 30.
- 1,527 cases classified as severe.
- 213 confirmed dead.
Overnight, we had the outcome of the emergency meeting on the coronavirus. The WHO has said that the Coronavirus virus is an international health emergency.
"For all of these reasons, I am declaring a public health emergency of international concern over the global outbreak of 2019nCoV."– Dr Tedros.
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