Chinese data to buffer AUD bullish correction

•  Chinese data marginally above the benchmark 50 and AUD bullish.
• Cata could take a back seat to the US/Chinese trade-war saga. 

The good news rolls-in at the start if this week with Chinese data buffering a marginally better than expected with the headline inflation from the eurozone on Friday. China’s manufacturing PMI recorded its first expansionary print in six months and the data is likely to bring a good-feel start to the week when  US traders will finally return from a Thanksgiving break.

China’s manufacturing PMI bullish for AUD in the open

The Chinese data was marginally above the benchmark 50-level to 50.2 in November but was better than expected and was higher than the 49.3 printed in the month prior. "New orders also broke into expansionary territory whilst other components (like new export orders, imports and business sentiment) also improved this month. The non-manufacturing PMI similarly beat surveyed expectations, coming in at 54.4 in November (up from 52.8 in the month prior) whilst the composite PMI was up to 53.7," analysts at ANZ Bank explained.

Data to take a back seat? 

However, data could take a back seat considering that China has vowed to retaliate to President Trump’s signing of the Hong Kong bill.

"Many are waiting to see if President Trump’s actions will have any impact on the progress of current trade negotiations and whether the US will go ahead with the scheduled tariff increase on 15 December. A deterioration in negotiations at this point, where the global data pulse and market sentiment has begun to turn after both countries touted the almost-signed ‘phase one’ deal, could dampen the outlook for global growth in the year ahead,"

the analysts at ANZ Bank argued. 
 

• AUD/JPY technical analysis: Straightforward bullish case so long as respecting the bull-channel support

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