According to the latest stats released by China’s statistics authorities, the Manufacturing PMI showed a sharp crash in February 2016. Still, before making any conclusions, we should keep in mind that February is the time wen China and some other Asian nations celebrate Chinese New Year, which means that the amount of holidays in February increase a lot.
There is nothing fancy that the stats got worse over the reporting period. At the same time, we should keep in mind that the Chinese Service PMI showed some weakness as well. With hat being said, analyst expectations have failed. According to the official PMI report published by the Chinese official statistics authorities, the PMI dropped down to the lowest level in 4 year’s time - 49.0 points in February against 49.4 points in January. Analysts had expected stronger data.
FOREX
In the meantime, Masterforex-V Academy reports that the Chinese Yuan is still trying to recover from the downtrend against the U.S. Dollar, which means that USDCNY is retracing from the rally.
At this point, the Renminbi is trading at 6,5143 CNY per 1 USD. The closest level of support is located at the local low of 6,4869. Alternatively, any rally is going to encounter resistance at the all-time high of 6,5957.
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