All cylinders are clicking for China’s Economy, Manufacturing PMIs roar to highest levels in 11 years, Services remain solid. Yuan rallies, Aussie slips on soft GDP print

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.

Aussie

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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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. 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. Prior to OANDA 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, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.