China's Caixin Manufacturing PMI returns to expansion with 51.6 in February vs. 50.2 expected and 49.2 previous, courtesy of the renewed increases in output, new orders and employment.

Key points

Wang Zhe, Senior Economist at Caixin Insight Group said, “The recovery in manufacturing activity came as the most recent wave of Covid-19 infections subsided.”

“Both manufacturing supply and demand expanded last month, as production gradually returned to normal while both domestic and external demand improved after a Covid policy shift,” Wang added.

AUD/USD erases losses above 0.6700

The upbeat print of the Chinese Manufacturing PMI has saved the day for the Aussie Dollar, as AUD/USD is erasing Australian GDP-induced losses to trade flat at 0.6726, at the time of writing.