All Cylinders Are Clicking For China’s Economy, Manufacturing PMIs Roar To Highest Levels In 11 Years, Services Remain Solid. Yuan Rallies, Aussie Slips On Soft GDP Print

Republished By Plato

Followers: 0

Global stock market turmoil might not be here to stay. Both China stocks and the yuan rallied after China PMIs show the economy is making a strong comeback. This round of data was very impressive. China’s February Manufacturing PMI rose to 52.6, the highest levels since April 2012, crushing the 50.6 estimate. Non-Manufacturing (Services) PMI impressed with a 56.3 reading, above the 54.9 consensus estimate.

Chinese stocks might get a boost as earnings season heats up, with many companies having improving outlooks. The Chinese yuan rallied rose 6.9289 after the impressive PMI data.

Aussie

The Australia dollar initially tumbled to a two-month low after Q4 GDP unexpectedly slowed and prompted some traders to downgrade their half-point rate rise bets to only a quarter point rise for the March 7^th meeting. The Aussie-dollar pared those losses after robust Chinese PMI data provided more optimism for improving demand from the their key trading partner.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Senior Market Analyst, The Americas at OANDA

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.