China’s NBS Manufacturing PMI drops to 50.4 in July vs. 50.8 expected

The purchasing managers’ index (PMI) for China’s manufacturing sector dropped to 50.4 in July from 50.9 in June, the latest data published by the National Bureau of Statistics (NBS) showed Saturday. The actual data missed the consensus estimate of 50.8. 

Meanwhile, the Non-Manufacturing PMI eased slightly to 53.3 in July from 53.5 in June. A reading above 50 indicates expansion, while a reading below suggests contraction.

Implications for AUD/USD

Discouraging NBS PMI numbers could strengthen the offered tone around the aussie dollar, with AUD/USD seen falling further towards 0.7300.

Potentially exerting additional downside pressure on the major, Brisbane joined Sydney in lockdown after six new cases of the delta covid variant were reported in Queensland’s state capital, exacerbating the pain in the major.

On Friday, the aussie extended its corrective pullback from eight-day highs of 0.7415 and hit 0.7330 lows before recovering modestly to end the week at 0.7345, still down 0.68% on the day.

Read: AUD/USD Weekly Forecast: Bears are on pause but retain control