AUD/USD Uninspired After China PMI Data, US Jobs Report Looms
- Australian Dollar little changed after China Manufacturing PMI
- Manufacturing PMI 50.4 vs 49.9 expected and 49.9 recorded in July
- United States employment figures remain key for near term trends
The Australian Dollar showed a mild reaction after better-than-expected Chinese Manufacturing PMI data crossed the wires as U.S. employment figures remain the focus in the near term. China is Australia’s largest trading partner, meaning economic performance there can be formative for the latter country’s growth and policy trends.
Official PMI data showed that the factory sector activity grew at the fastest pace since October 2014. However, an analogous private-sector estimate from Caixin disagreed, suggesting manufacturing stalled in August having expanded in the prior month. On the services side of the equation, official figures suggested activity growth slowed for the first time in three months.
The Aussie’s tepid reaction to the data may reflect the disconnect between public- and private-sector figures. Upcoming event risk may have also played a part as markets await the release of Augusts’ US Employment report on Friday. Speculation over the timing of the next Fed rate hike has dominated investors’ attention since last week’s high-profile speech from Fed Chair Janet Yellen at the Jackson Hole Symposium.