FXStreet (Edinburgh) – Currency Analyst Lee Hardman at BTMU assessed the potential scenario in the Chinese economy following the poor PMI results over the weekend.
Key Quotes
“Commodity related currencies and the Chinese equity market have remained under downward pressure in the Asian trading session”.
“The final Caixin manufacturing PMI survey from China was revised lower to 47.8 in July reaching its lowest level since July 2013”.
“The official PMI surveys for both the manufacturing and nonmanufacturing sectors will be released on Wednesday providing further signals for the growth momentum of the Chinese economy”.
“Bloomberg has run a report stating that China’s leadership is preparing fresh fiscal spending to ensure that signs of economic weakening don’t put their 2015 growth target out of reach”.
“In the report they highlight the Communist Party’s Politburo pledged last week to make “preemptive” policy adjustments in the second half of the year. Premier Li stated last week that expediting the construction of a modern underground pipe system in China’s big cities will be a new growth driver according to the People’s Daily website”.
(Market News Provided by FXstreet)