China's Caixin Manufacturing PMI edges higher to 50.8 in December vs. 50.4 expected

China's Caixin Manufacturing Purchasing Managers' Index (PMI) increased slightly to 50.8 in December, compared with November’s expansion of 50.7, according to the latest data released on Tuesday.

The data beat the market expectations of a 50.4 print.

Key highlights (via Caixin)

“Output and new orders both increase at quicker rates...

...but firms maintain a cautious approach to employment.”

“Inflationary pressures remain soft.”

"Both supply and demand expanded as the market continued its upward trend, boosting production and sales. The subindexes for output and total new orders reached new highs since May and February, respectively, with particularly strong demand for consumer goods,” said Wang Zhe, an economist at Caixin Insight Group.

"But overseas purchasing power remained limited, with the gauge for new export orders in contraction for the sixth consecutive month, despite a softer rate of contraction," Wang added.

On Sunday, China’s National Bureau of Statistics (NBS) released the country’s official Manufacturing Purchasing Managers' Index (PMI), which eased further to 49.0 as against the 49.4 contraction reported in November. The market consensus was for a 49.5 readout.

AUD/USD reaction to China’s PMI data

The upside surprise in the Chinese Manufacturing PMI lends support to the Aussie Dollar, with AUD/USD  bouncing off session lows of 0.6806 to now trade at 0.6817, up 0.08% on the day.