The China Manufacturing PMI increased to 50.2 in February, up from 50.1 in January, and against 49.9 expected. This was reported by the National Bureau of Statistics (NBS).

Comment from Dr. Wang Zhe Senior Economist, Caixin Insight Group

"... manufacturing PMI was 50.4 in February. This is an increase of 49.1 in the previous month. It shows that manufacturing activity has rebounded into expansionary territory. The recovery of the Chinese manufacturing sector was continued.

"The manufacturing sector saw an improvement in supply. Although overall demand was strong, external demand remained weak. Both output and total new orders gauges returned to expansionary territory. In February, the gauge for total new order reached its highest point in eight months. External demand was weak despite the worsening effects from the pandemic that disrupted transport. For the seventh consecutive month, the gauge for new export orders for February was in contractionary territory.

Reaction of the market

AUD/USD moves slightly to 0.7250, despite positive Chinese PMI reports. The spot traded at 7259 as of writing. The spot is nearly unchanged for the day.