Australian Dollar Steady After Caixin Chinese PMI Figures
DailyFX.com -
Talking Points:
AUD/USD showed a tepid reaction towards Caixin’s China PMI figures
PMI Services 52.4 Jan. vs 50.2 Dec.; PMI Composite 50.1 Jan. vs 49.4 Dec.
News-flow may speak to China’s attempt to become a service oriented economy
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The Australian Dollar did not display an outsized move against its US counterpart after Caixin released its Chinese economic statistics. The private sector’s PMI Services gauge showed a print of 52.4, higher than its December reading of 50.2. This was the highest mark since July 2015. The overall composite PMI grew to 50.1 versus the previous 49.4 figure.
The lackluster response by the unit may be due to Australia mainly depending on China’s industrial sector for growth. Caixin’s manufacturing PMI was released earlier in the week.
This data may pose more importance to the economic transition occurring in China. The nation’s government is attempting to make the economy more service oriented. The news-flow could indicate that the country is moving in the correct trend to reach its policy goal.
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