Negative macroeconomic statistics from China | 31 August 2021

31 August 2021, USD/JPY

Negative macroeconomic statistics from China

USDJPY trading plan:

China's businesses and the broader economy came under increasing pressure in August as factory activity expanded at a slower pace. The official manufacturing Purchasing Managers Index fell to 50.1 in August from 50.4 in July, data from the National Bureau of Statistics showed on Tuesday, holding just above the 50-point mark that separates growth from contraction. Adding to signs of a broadening economic slowdown, COVID-19-related restrictions drove services sector activity into sharp contraction for the first time since the height of the pandemic in February last year. This is a negative signal for this currency pair.

Investment idea: sell 109.95 and take profit 109.60.

David Johnson
Analyst of «FreshForex» company
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