China manufacturing PMI weaker than expected; AUD/USD up to 0.7420
InvestingOnline.com
31/07/2018, 01:59China reported a weaker than expected NBS manufacturing PMI in July according to the China Federation of Logistics and Purchasing (CFLP). Building permits in Australia rose more than expected.
NBS manufacturing PMI declined to 51.2 in July from 51.5 in June, a deeper drop regarding the expected 51.3 by market.
According to the official report, “market demand growth is stable. In July, although there were rains and hot weather in various parts of the country, some coastal areas were affected by typhoons, which caused a certain short-term impact on market demand. However, the overall growth of market demand remained stable, and domestic demand supported. The new order index was 52.3%, a slight decrease of 0.9 percentage points from the previous month and 0.5 percentage points lower than the same period last year. It is still in the expansion range.”
China also published its non-manufacturing PMI with a 54 in July from 55 in June. The number was against the 55 expected by the market. The figure shows expansion but at a slower pace from June.
Building permits up in Australia
Building permits recovered in June what is lost in May after the report showed an increase of 6.4% in June from the 3.2% decline posted in May. Market expected an unchanged market activity.
Year over year, building permits rose 1.6% in June, better than the 0.6% decline expected by the market but a slower pace from the 3.1% increase performed on May.
According to the Australian Bureau of Statistics, “the seasonally adjusted estimate of the value of total building approved fell 1.2% in June. The value of residential building rose 1.8%, while the value of non-residential building fell 7.0%.”
AUD/USD up amid China and Australia data
AUDUSD daily chart July 30
On forex, the https://www.investingonline.com/charts/audusd/Australian dollar is trading higher against its American counterpart following upbeat Australian housing data and Chinese weaker than expected PMI. AUD/USD is up for the third day in a row.
AUD/USD is now trading 0.22% positive on Tuesday as the cross is trading at 0.7423. The pair seems ready to test the 50-day moving average at 0.7460 as volume, and technical indicators are suggesting more upside room.
