Research Team at TDS, notes that the Chinese official manufacturing index and the Caixin manufacturing PMI both came in below expectations (sectors contracting) and non-manufacturing for Feb expanded, but hot a 7yr low. Key Quotes “We suspect that seasonal drivers, that is the slowdown approaching Chinese New Year help explain some of the weakness. While new export orders rose for both manufacturing PMIs, total new orders fell pointing to soft domestic demand. A weak aspect of the Caixin survey was the employment sub-index posting its lowest print since 2009. Official PMI 49, mkt 49.4, Non Manufacturing 48, mkt 48.4 and Non Manufacturing at 52.7 vs 53.5 prior. Yesterday, the PBoC cut the RRR from 17.5% to 17% in London time. The announcement came as a surprise, given the PBoC has signalled it was moving away from blunt policy measures, but the move was easily absorbed.” For more information, read our latest forex news.