Free Trial

Caixin PMI Surprises On The Downside, But USD/CNH Spike Above 7.1700 Short Lived

CHINA DATA

The Caixin manufacturing PMI showed a decent downside surprise for the July print, coming in at 49.2, versus 50.1 expected and 50.5 prior. This ends the recent run of above 50.0 prints and puts the headline index back to January levels from earlier in the year.

  • This contrasts with the slightly better than expected outcome for the official manufacturing PMI, which printed yesterday. Still, the level of both indices are now quite close to each other.
  • In terms of the detail, the output index fell to 49.2 from 51 in June. New orders were also down versus the prior month.
  • The initial market reaction saw USD/CNH spike to session highs of 7.1736, but we now sit lower, back at 7.1670/80, still 0.30% weaker in CNH terms for the session.
  • The weaker onshore equity open has given way to more positive trends in recent dealings. HK equities are close to session highs, the HSI up 1%, with the tech index around 2% higher at this stage.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.