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

China Caixin Manufacturing PMI overview

Having witnessed upbeat prints of China’s NBS Manufacturing PMI the previous week, AUD/USD traders eye July month Caixin Manufacturing PMI from the dragon nation as the immediate catalyst. The activity data from Australia’s largest customer, up for publishing at 01:45 GMT on Monday, also become important as market reassess risks following the latest US dollar pullback from over two-year low.

Forecasts suggest another above-50 level of 51.3 versus the 51.2 prior, which in turn could help the RBA policymakers to ask for some more time before jumping on negative rates, as suggested from their latest communications. However, the coronavirus (COVID-19) woes can keep the bulls in check.

Analysts at Westpac anticipate no change in the private activity gauge while saying, "The Caixin PMI appears to be holding steady in July (prior and market forecast: 51.2)."

How could it affect the AUD/USD?

With the COVID-19 wave 2.0 affecting the Aussie economy, the bears are looking for any strong catalysts to enter and may cheer negative surprises in the data. On the contrary, upbeat prints are less likely to offer any strong run-up to the pair as the market’s risk-tone sentiment dwindles amid mixed catalysts.

Technically, In addition to 10-day EMA near 0.7125, the 0.7065/60 rest-zone, comprising the high of June 10 and July 24, also restricts the pair’s near-term downside. However, bulls are asking for a clear break above 0.7200 to attack 2019 high near 0.7300.

Key Notes

AUD/USD: Coronavirus woes probe bulls near 18-month top above 0.7100

AUD/USD Forecast: Coronavirus developments may hit the Aussie

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.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.