China manufacturing unexpectedly expands

FXstreet.com (Barcelona) - China's NBS Manufacturing PMI for the month of July came at 50.3 vs 49.8 exp and 50.1 prior. Activity expanded, eliminating fears of a possible first time contraction in 10 months, a Reuters poll showed.

The data suggest demand might have started to pick up again, despite overcapacity in large factories remains a major concern. The current tighter stance by the Chinese Central Bank (PBOC) is not helping to stimulate activity either. However, with all that said, the data is encouraging, yet as usual when treating Chinese number, take it with a grain of salt.

AUD/USD jumps into positive territory on upbeat PMI in China

The AUD/USD foreign exchange rate promptly eliminated its losses Thursday morning, jumping higher despite being held under the 0.9000 level during Asian trading following the Chinese PMI.
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