Technical Analysis

China official PMIs: Manufacturing 47.0 (vs. prior 48.0) & Services 41.6 (prior 46.7)

December PMIs from China’s National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP).

Manufacturing 47.0

Services 41.6

Composite 42.6

Languishing with the renewed COVID-19 outbreak as China moved rapidly towards reopening. While widespread lockdowns are a thing of the past self-imposed isolation and illness have seen impacts on the Chinese economy as workers stay home and others (at the margin) avoid going out and about. Check out the Services PMI, 41.6 is deeply contractionary. Eating out, shopping, personal services, and more – all suffering.

While this set of results will not be a positive for China trades, China-proxy trades (AUD for example), oil and other commodities, for traders and markets it will not be a surprise. We’ve all been seeing how the virus is spreading in China, despite the official Chinese media downplaying it, and how that is hitting economic activity. China’s people deserve better, hopefully it’ll come good for them soon.

As a note, major forex centres in Asia will all be closed on Monday.

  • Japan, Singapore, Hong Kong, Australia and New Zealand markets are all closed.

China is also out on Monday.

Happy New Year to all – catch you on Tuesday morning Asia time!

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