China's official PMI 49.2 in August vs. 50.1 in July and consensus of 50. It's the first time...

China's official PMI 49.2 in August vs. 50.1 in July and consensus of 50. It's the first time since November that the gauge has fallen below 50 and indicated contraction. "It shows the economy is moving downward," says the China Federation of Logistics & Purchasing, which produces the figures, "but is bottoming out considering changes in the major subindexes."

Comments (5)
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    This may sustain the downward pressure on the AUD.
    2 Sep 2012, 12:45 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
    Yeah I had a larger AUD/€ long position I closed since the China bad news had mutated from a trickle to a constant stream. Hardly an economy more dependent on China than Australia. Their banks look relatively ok - even if they apparently make up more than half the index (always a bad sign when financials become so heavy in an index), it's their Asia dependent mining, housing bubble and China slowdown that could put a real dent into their economy.
    2 Sep 2012, 01:11 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    Down already in early trading tonite around -0.5% ...
    Agree that Aussie banks have better cap than foreign counterparts, but the economic weakness will still put pressure on AUD, and the RBA may end up easing rates.
    2 Sep 2012, 07:58 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1018) | Send Message
    Most industrial commodities such as the metals have been reacting to this story for at least a year, but in my opinion however not full priced in the reality. The caveat is what is reality where China is concerned that can only be de-coded if one figures its end game out.
    2 Sep 2012, 05:55 PM Reply Like
  • eggonstick
    , contributor
    Comments (25) | Send Message
    yep....but don't forget the easing coming
    3 Sep 2012, 04:35 AM Reply Like
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