Aussie Dollar Showed a Mild Rally as Caixin PMI Marks a 3-Month High

Talking Points:

• China’s Caixin manufacturing PMI showed a print of 48.3 in October
• Aussie Dollar showed a mild rally at the time the data was released
• This is the highest mark for the manufacturing sector since July.

The Aussie Dollar showed a mild rally against its US namesake as China’s Caixin manufacturing PMI beat the markets’ expectation. The headline figure showed a print of 48.3 in October versus the 47.6 forecast and the 47.2 figure in September. This is the highest reading since July. The reaction of the unit may be simply due to the unexpected surpassing of the predicted number. It is important to note that a mark below 50 represents a contraction in the sector.

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