According to the latest data published by China’s National Bureau of Statistics (NBS) on Monday, the country’s official Manufacturing Purchasing Managers' Index (PMI) improved to 49.3 in July as against the 49.0 contraction seen in June and the market expectations of a 49.2 figure.

The index remained below the 50 mark, which separates expansion from contraction, for a fourth straight month, suggesting that additional policy support is needed to stimulate post-Covid economic recovery.

The NBS Services PMI dropped to 51.5 in July, compared with 53.2 reported in June.

AUD/USD reaction

The mixed readings of the Chinese PMIs failed to have any negative impact on the Aussie Dollar, with AUD/USD marching toward 0.6700. The spot is trading at 0.6677, at the time of writing, down 0.44% on the day.