As experts in the Stock Market and trading, we bring you unique insights and valuable information to help you make informed decisions. Today, we are excited to discuss the latest developments in the manufacturing sector and their impact on the market.

New Orders Surge in Manufacturing Sector

• New orders in the manufacturing sector have seen a significant increase, marking the most substantial growth in over 12 months.
• Manufacturers are reporting a surge in demand from overseas, with new orders from abroad rising at the fastest pace in almost three-and-a-half years.
• Despite the uptick in demand and production levels, employment levels have fallen for the eighth consecutive month.
• Input prices have also seen a notable increase, the most marked pace since October 2023, while competition continues to put pressure on factory gate prices.
• Optimism in the manufacturing sector has declined to a four-month low due to concerns about rising costs and competition.

April Survey Takeaways

The latest NBS Manufacturing and Non-Manufacturing PMIs from China signal slower growth across the private sector at the start of Q2 2024. Despite this, an improving demand environment and softer outprice pressures could indicate a pickup in economic activity through the second quarter of 2024.

China accounts for a significant portion of Australian exports, with a considerable percentage of the Australian workforce in trade-related jobs. Therefore, any upward trends in demand could have a positive impact on the Australian economy and the Aussie dollar.

However, warning signals such as input price trends, falling employment levels, and waning optimism among manufacturers should not be overlooked.

The Aussie Dollar’s Reaction to the Caixin Manufacturing PMI

Before the release of the Caixin Manufacturing PMI survey, the AUD/USD experienced some volatility, reaching a high of $0.65676 before declining to a low of $0.65486.

Following the PMI survey, the AUD/USD initially climbed to a post-release high of $0.65587 before dropping to a low of $0.65481.

As of Tuesday (April 30), the AUD/USD was down 0.28% to $0.65479. Factors such as weaker-than-expected Australian retail sales figures, NBS private sector PMIs from China, and mixed signals from the China Caixin Manufacturing PMI contributed to the decline in the Aussie dollar.