Global stock market turmoil might not be here to stay. Both China stocks and the yuan rallied after China PMIs show the economy is making a strong comeback. This round of data was very impressive. China’s February Manufacturing PMI rose to 52.6, the highest levels since April 2012, crushing the 50.6 estimate. Non-Manufacturing (Services) PMI impressed with a 56.3 reading, above the 54.9 consensus estimate.
Chinese stocks might get a boost as earnings season heats up, with many companies having improving outlooks. The Chinese yuan rallied to 6.9289 after the impressive PMI data.
The Australia dollar initially tumbled to a two-month low after Q4 GDP unexpectedly slowed and prompted some traders to downgrade their half-point rate rise bets to only a quarter point rise for the March 7th meeting. The Aussie-dollar pared those losses after robust Chinese PMI data provided more optimism for improving demand from the their key trading partner.
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With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.
Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.
Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal.
Ed holds a BA in Economics from Rutgers University.