Chinese Caixin Manufacturing PMI Jan missed: 51.5 vs exp 52.6; prev 53.0, AUD holds

Chinese Caixin Manufacturing PMI  for Jan arrived at 51.5 vs exp 52.6; prev 53.0.

Business conditions faced by Chinese manufacturers improved at the slowest rate for seven months at the start of 2021, according to latest PMI data. Companies signalled softer increases in output and new orders, alongside a renewed decline in new export work, as the coronavirus disease 2019 (COVID-19) pandemic weighed on demand conditions.

At the same time, stock shortages and shipping delays led to a further marked deterioration in supplier performance and added further upwards pressure on costs. Consequently, firms raised their selling prices at the steepest rate since mid-2018.

AUD/USD trades bid in a correction from the day's lows despite the data miss.