However, the Caixin Manufacturing PMI had more weightage. In February, the Caixin Manufacturing PMI rose from 50.8 to 50.9. Economists forecast a fall to 50.6.

According to the February Survey,

• Manufacturing production rose at the most marked pace since May 2023.
• New export orders increased for the second month, with manufacturers reporting improved demand conditions.
• Firms expanded purchasing activity in response to an improving demand environment.
• Unfinished business declined in February despite manufacturers reducing headcounts.
• The rate of cost inflation slowed further, with input prices rising at the least marked pace in seven months.
• Firms reduced selling prices for the second month to win new business.

The pickup in new overseas orders could ease deflationary pressures. However, the focus will shift to Beijing. Lawmakers will meet next week to discuss economic forecasts and policy. Following a series of monetary policy moves, the markets remain hopeful of a fiscal stimulus package to bolster the Chinese economy.

Aussie Dollar Reaction to the China Private Sector PMIs

The AUD/USD reacted to the NBS PMI numbers, initially dropping to a low of $0.64982 before climbing to a post-stat high of $0.65059.

However, in response to the Caixin Manufacturing PMI, the Aussie dollar dipped to a low of $0.65023 before rising to a post-stat high of $0.65076.

On Friday, the Aussie dollar was up 0.13% to $0.65060.