China PMIs move into contraction territories

The monthly Manufacturing and Non-manufacturing PMIs were released as follows:

• China Manufacturing PMI March: 49.5 (est 49.8; prev 50.2).
• Non-Manufacturing PMI March: 48.4 (est 50.3; prev 51.6).
• China march official composite PMI at 48.8.

There was no major reaction in markets to the data, despite moving into contraction territory, although AUD/USD is a touch softer, by a handful of pips and turning negative for the day at 0.7505. 

About China Manufacturing

The monthly manufacturing PMI is released by China Federation of Logistics and Purchasing (CFLP) on the last day of every month. The official PMI is released before the Caixin Manufacturing PMI, which makes it even more of a leading indicator, highlighting the health of the manufacturing sector, considered as the backbone of the Chinese economy. The data is of high relevance for the financial markets throughout several asset classes, given China’s influence on the global economy.