China's official February Manufacturing PMI arrived at 50.2 vs the expected 49.9 while the Non-manufacturing arrived at 51.6 vs the estimated 50.7; prev 51.1. The Composite PMI Feb came as 51.2 (prev 51.0).
AUD/USD update
AUD/USD is relatively unchanged on the data as it takes its cues from the equity markets and updates surrounding the Ukraine crisis and facts on the commodity markets. AUD/USD holds near 0.7260 and near the top of the correction's range following the opening gap.
Lower economic activity due to the Lunar New Year likely was expected to weigh on the PMis in Feb as factories shut for the holidays and workers return to their hometowns, analysts at TD Securities explained.
''Virus containment measures are likely to continue to weigh on the services sector which could offset any boost to consumption from the holidays. Further monetary easing ahead should help to support activity.''
About the Manufacturing Purchasing Managers Index (PMI)
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.
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