China's PMIs have arrived as follows:

• China's September official composite PMI 50.9
• China's September official services PMI falls to 50.6 vs 52.6 in August
• China's September official manufacturing PMI at 50.1 (Reuters poll 49.6) vs 49.4 in August

 Ongoing COVID-19 risks are set to continue impacting the official services PMI in September.

The Caixin manufacturing PMI is also expected to confirm the broad-spread nature of the slowdown (market forecast: 49.5).

AUD/USD is attempting to move higher on the data but has come under pressure again, balancing at 0.6497. 

Why it matters to traders?

The monthly manufacturing PMI is released by China Federation of Logistics and Purchasing (CFLP) on the last day of every month. The official PMI is released before the Caixin Manufacturing PMI, which makes it even more of a leading indicator, highlighting the health of the manufacturing sector, considered as the backbone of the Chinese economy. The data is of high relevance for the financial markets throughout several asset classes, given China’s influence on the global economy.