The Australian Dollar recalibrated after Chinese PMI showed signs of an economic recovery which followed domestic data that revealed an easing of conditions.
Chinese manufacturing PMI for January printed in line with expectations at 50.1 and the non-manufacturing read came in at 54.4, way above the 52.0 forecast. This combined to give a composite PMI read of 52.9 against 42.6 previously, a massive boost in sentiment.
The China PMI indices are the result of a survey of 3,000 manufacturers across China, mostly large firms. It is a diffusion index, a reading over 50 is viewed as expansionary for the economic outlook of the world’s second-largest economy.