China’s purchasing managers’ indices are scheduled to be released on Friday, 1st April and will be closely watched for a sense of how its economy is performing amid heightened concerns of a slowdown. Research Team at BNP Paribas expect both the official and the Caixin/Markit PMIs to tick higher from their respective readings of 49 and 48 on Friday.
China has two PMIs, one produced by the government, and the other by private financial data provider Markit (known as the Caixin China PMI). A rebound, or at least stabilization in the PMI would suggest policy makers’ efforts are being rewarded, while a further decline would suggest otherwise.
“The unwinding of a seasonal drag from the Lunar New Year and a strong recovery in the property market all argue in favour of some firming in the numbers. We do not see a significant boost for the G10 commodity exporter currencies however as we see a larger threat from a repricing of Fed expectations.” said BNP Paribas
The material has been provided by InstaForex Company – www.instaforex.com