China's Caixin PMI: When is it and how will it affect the AUD/USD?

Caixin Manufacturing PMI overview

China's Caixin Manufacturing PMI, which drops at 01:45 GMT, is a diffusion index of surveyed purchasing managers associated with the manufacturing sector. A slowdown in China's economic growth through the first quarter has continued to drag, and with the Caixin PMI expected to contract slightly from 51.0 to 50.9 for the month of April. China's close commercial relationship with Australia also means that the published figures could have a strong knock-on effect for the AUD/USD.

How could it affect the AUD/USD?

The Aussie is floundering into 11-month lows, with the Aussie withering against a Greenback recovery that sees the USD advancing across the broad FX market. Adding into that a softening Reserve Bank of Australia (RBA) that held steady on interest rates for the 19th straight rate decision, and the AUD is getting punished by an ever-widening interest rate differential. As FXStreet's Chief Analyst Valeria Bednarik noted about the Aussies technical position ahead of the Caixin PMI: "during the upcoming Asian session, China will release the Caixin Manufacturing PMI for April, forecasted at 50.9 from a previous 51.0. Chinese data usually have a strong effect on the commodity-related currency, due to the tight commercial relationship between both economies.  Technically, the pair is still biased lower according to technical readings in the 4 hours chart, as the price is further below a bearish 20 SMA,  while technical indicators stalled their declines well below their mid-lines, but with no signs of changing their previous course."

Key notes

AUD/USD analysis: Chinese data to set the tone in Asian hours

AUDUSD: The short term momentum indicators are heavy

About the Caixin Manufacturing PMI

The Caixin China Manufacturing PMI™ is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.