There were no data releases from Australia, yesterday, but from China both Caixin and official Manufacturing PMI data was published. At 48.4 in January, the seasonally adjusted Purchasing Managers’ Index remained below the crucial 50.0 value separating growth from contraction for the eleventh successive month. The reading was up slightly from 48.2 in December, and signalled a further modest deterioration in the overall health of China’s manufacturing sector.
China’s official factory gauge signaled a record sixth straight month of deterioration, raising the stakes for policy makers struggling to prop up the economy amid a second bear market in stocks since June and a currency at a five-year low.
The purchasing managers index dropped to a three-year low of 49.4 in January, the National Bureau of Statistics said Monday.
ISM In the US session, also, Manufacturing PMI figures were released. The January PMI registered 48.2 percent, an increase of 0.2 percentage point from the seasonally adjusted December reading of 48 percent. Analysts were forecasting increase to 48.6. Comments from the panel indicate a mix ranging from strong to soft orders, as eight of our 18 industries report an increase in orders, and seven industries report a decrease in orders.
Focus of tomorrow's session will be on RBA rate decision. Though, no change is expected, following statement should bring some volatility to the markets. There will be no data releases in the US session.
Figures to watch:
Cash Rate/RBA Rate Statement (Tuesday 4:30)
