As of August 2014, China's manufacturing sector showed a decline in the preliminary PMI down to one of the lowest points.
According to the recent reports published by Markit Economics and HSBC, the preliminary PMI report showed a drop from 51.7 points in July down to 50,3 in August 2014. Therefore, the decline turned out to be stronger than expected since the consensus forecast was close to 51,5 points. Despite that, China's manufacturing sector is still active since a value above 50 indicates strength.
As for the revised PMI report, China is going to release it along with other official data on September 1st, 2014.
Meanwhile, the Chinese housing market has been going down for 2 consecutive months in a row. In particular, prices on new homes dropped in 70 cities all around China. As the result of this decline, Chinese construction companies are now trying to reduce the amount of built residentially property. At the same time, most experts assume that the price decline in the Chinese housing market will continue. It should be noted that the construction sector along with the housing market contributes the lion's share to the economic growth in China. In particular, altogether they account for more than 20% of the GDP.
Since the beginning of 2014, the housing prices in China dropped some 10,5% amid disappointing forecasts made by several experts across the country.
USDCNY
Today, on August 25th, the Chinese Yuan keeps on gaining value against the US Dollar despite the disappointing figures reported recently. In particular, USDCNY came close to 6,1515, which is the price level seen in March 2014, Masterforex-V Academy reports. The closest level of support is located at 6,12 while the closest level of resistance is next to 6,2350 as well as the MF sloping channel.
