China Manufacturing PMI
The official Chinese manufacturing PMI, which is slated to be released on Monday, has been hovering near the 50 demarcation line for more than four years indicating slower manufacturing activity. Consensus expects the trend to continue in July with a forecast of 50.0 for the index.
Meanwhile, the Caixin manufacturing PMI, a private gauge of Chinese industrial activity, fell to 48.6 in June—remaining below the 50-threshold since early 2015. That said, the index is expected to increase but stay in contractionary territory in July with consensus looking for a 48.8 print next week. Conversely, the service-sector component of the Caixin PMI, also being released next week, has been faring better as of late and is in expansion territory at 52.7.
If this figure will remain around 50, could support the Australian currency
Leaving you any comment, technically speaking, the analysis that we published two days ago, seems to have had a correct reading. We have identified a potential impulsive sequence (12345 green), and the market is confirming the Wave 4, If support holds, we can see an upward swing potential. In an hour, we will post the next update.
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If the price comes back to 0.7246 I think that the agressive buyers will come again and push the price higher once more.
Here is my analysis: