China's Caixin Manufacturing PMI for October arrived at 49.2 vs. 49.0 expected and 48.1 previous, showing that the country’s manufacturing sector activity is showing some signs of improvement amid covid containment.

Although levels of both production and new business fell during October, rates of decline eased.

Wang Zhe, Senior Economist at Caixin Insight Group said, “from the previous month to 49.2, but remained in contractionary territory. This marked the third consecutive month of contraction in manufacturing activities, still weighed down by Covid-19 outbreaks and consequent tightening of prevention and containment measures.”

“Supply and demand in manufacturing contracted in tandem amid persistent Covid outbreaks,” Wang added.

AUD/USD holds above 0.6400

The upbeat print of the Chinese Manufacturing PMI fails to move the needle for the aussie dollar, as AUD/USD keeps its range at around 0.6420, up 0.34% on the day, at the time of writing.