China's Caixin Manufacturing PMI unexpectedly contracts to 49.5 in October vs. 50.8 expected

China's Caixin Manufacturing Purchasing Managers' Index (PMI) unexpectedly dropped to 45.5 in October, compared with September’s expansion of 50.6, the latest data published on Wednesday.

The market had expected a 50.8 readout.

Key highlights (via Caixin)

"Manufacturing demand expanded slowly, and supply contracted. Total new orders increased for the third consecutive month, but the pace of growth slowed for two months in a row. External demand continued to decline, with new export orders falling for the fourth straight month,” said Wang Zhe, an economist at Caixin Insight Group.

"As a result, manufacturers reduced their supply, leading production to shrink for the first time in three months," Wang added.

On Tuesday, China’s National Bureau of Statistics (NBS) released the country’s official Manufacturing Purchasing Managers' Index (PMI), which dropped to 49.5 in October as against the 50.2 expansion expected.

AUD/USD reaction to China’s PMI data

The downbeat Chinese Manufacturing PMI adds to the weight on the Aussie Dollar, as AUD/USD is flirting with an intraday low near 0.6325, down 0.15% on the day.