AUD response to the poor China PMI (spoiler: the response came before the data)
The China Caixin Manufacturing PMI dropped to 48.3 in January, which is the weakest since Feb 2016
Here is the Australian dollar behaviour, blown up to a one-minute chart. I've circled the time of the PMI release:
Go ahead, tell me this data point was not in the market well prior to the official relase time.
On another matter entirely.
Yesterday's official manufacturing PMI showed contraction,. Today's PMi showed contraction even worse.
Note that today's PMI, the Caixin has a greater representation of private-owned enterprises (POEs) than the NBS PMI does. The NBS PMI has a great representation of state-owned enterprises (SOE). I pointed this out in my earlier preview.
The point is that SOEs can be induced by government to do more to support the economy. that's not the case with POEs. hence the two PPMIs can often differ markedly, as they have done here.