When are China’s official PMI data and how could they affect AUD/USD?

China Federation of Logistic and Purchasing will release December month’s official PMI  numbers around 12 pm Sydney/01 am GMT on Tuesday. With its positive surprise in the previous month, coupled with the recent rally in the AUD/USD pair, the Aussie traders will be particularly very interested in the key data from its largest consumer.

Market consensus signals a different picture regarding the activity details as the headlines NBS Manufacturing PMI is expected to pull back to 50.1 from 50.2 while the Non-Manufacturing PMI could decline to 53.6 versus 54.4 previous readouts.

How could they affect AUD/USD?

While RBA stood pat in its latest monetary policy decision, the recent recovery in the Chinese data, coupled with an absence of disappointment from home, seems to offer a pleasant start of 2020 to the policymakers. However, the mood could be spoiled if the Chinese PMIs fail to hold onto their latest recovery. It’s worth mentioning that the Australian markets will be closed before an hour of the data release and hence fears of either a no reaction or wild spikes can’t be ruled out post-release.

Technically, pair’s declines below December 13 high around 0.6940 can trigger fresh downpour while upside seems to be capped by July top near 0.7080.

Key Notes

AUD/USD seesaws near 0.7000, eyes China data for fresh impulse

AUD/USD Forecast: Next target at 0.7081, July’s high

About the China NBS Manufacturing 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 influence on the global economy, this economic indicator would have an impact on the Forex market.

About the China Non-Manufacturing PMI

The official non-manufacturing PMI, released by China Federation of Logistics and Purchasing (CFLP), is based on a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications. It's the level of a diffusion index based on surveyed purchasing managers in the services industry and if it's above 50.0 indicates industry expansion, below indicates contraction.