Chinese Factory activity contracts first time since Feb 2020, AUD steady

China NBS’ manufacturing and non-manufacturing PMIs for September are in as follows:

Manufacturing 49.6 (expected 50.1).

Factory activity contracts first time since Feb. 2020.

Non-manufacturing PMI (sep): 53.2 (est 49.8, prev 47.5).

A bounce in the service sector was hoped for.

Later we have the release as is the Caixin Manufacturing survey for the same month. 

AUD/USD reaction

As per the following analysis, AUD/USD Price Analysis: Bulls in a precarious position into China data dump, the price is due for a correction and was hovering in what might be expected to be an area of accumulation.

There has not been a reaction, so far, to the data. 

About China PMIs

The Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) studies business conditions in both the Chinese manufacturing and non-manufacturing sectors. Any readings 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