The purchasing managers’ index (PMI) for China’s manufacturing sector dropped to 50.4 in July from 50.9 in June, the latest data published by the National Bureau of Statistics (NBS) showed Saturday. The actual data missed the consensus estimate of 50.8.
Meanwhile, the Non-Manufacturing PMI eased slightly to 53.3 in July from 53.5 in June. A reading above 50 indicates expansion, while a reading below suggests contraction.
Implications for AUD/USD
Discouraging NBS PMI numbers could strengthen the offered tone around the aussie dollar, with AUD/USD seen falling further towards 0.7300.
Potentially exerting additional downside pressure on the major, Brisbane joined Sydney in lockdown after six new cases of the delta covid variant were reported in Queensland’s state capital, exacerbating the pain in the major.
On Friday, the aussie extended its corrective pullback from eight-day highs of 0.7415 and hit 0.7330 lows before recovering modestly to end the week at 0.7345, still down 0.68% on the day.
Read: AUD/USD Weekly Forecast: Bears are on pause but retain control
Despite closing the week below the all-important 200-Daily Moving Average (DMA) at $1821, gold price recorded weekly gains, courtesy of the dovish Fed decision and escalating coronavirus concerns globally.
The findings of the latest Reuters poll of 38 analysts also back the case for a modesty rally in gold price this year, with the precious metal likely to benefit from rising inflation expectations as well.
However, gold price is likely to tick lower in 2022 amid a sustained global economic recovery and monetary policy normalization by global central banks.
Read: Gold Weekly Forecast: XAU/USD bulls hesitate as focus shift to NFP
“Gold will average $1,835 an ounce in the third quarter of the year and $1,841 in the fourth quarter.”
“For the full year, prices will average $1,812, the poll found, while in 2022 they will average $1,785.”
“For silver, the poll forecast an average price of $26.50 an ounce this year – a little above its current level of $25.50 – and $25 in 2022.”