On Friday, the China's National Bureau of Statistics released it’s manufacturing PMI data that rose from 50.1 to 50.3 in December. This acquisition outperformed the forecast of a decline to 50.0.

Meanwhile ,that alsomarking China's still stable manufacturing expanded at the end of 2021. Previously, the manufacturing index had declined for seven consecutive months.

Besides that, it had been mired in the contraction zone in September and October. So far, there are some factors that become the reasons of the whole condition happened. 

Surging commodity prices in international markets, global supply chain bottlenecks, and energy crises due to the disconnection of coal distribution lines due to catastrophic floods are some of the factors that suppress manufacturing activity.

Non-Manufacture is Strong, China’s Economy Still Vulnerable

However, the rise of the Manufacturing PMI in the last two months is a promising outlook, especially this happening in the midst of the spread of the Omicron variant of COVID.

Meanwhile, the China's Non-Manufacturing PMI data also expanded in December. Sentiment for the construction and services sector rose from 52.3 to 52.7. 

This data also experienced a recovery from the contraction zone In the market. However, the growth trend is more stable than the manufacturing sector

China's yuan weakened limited after the release of PMI data this morning. The USD/CNY was up by 0.08 percent and was trading at 6.3731 when this news was written, not far from the range of price movements formed since Dec. 11.

The Fundamental Data Shows that China Is Still Struggling 

Overall, the fundamental data reflects the China's economy. It seems that their economy is still struggling to bounce back from a slowdown in the second half of 2021. 

Some analysts expect the China's fourth-quarter GDP to fall to below 4%. It is for sure that the situation like that is a far cry from the 18.3 percent increase over the first quarter.

The gloomy outlook of the Chinese economy is quite reasonable considering that the consumption sector is still below the pre-COVID levels so far. 

From some data released it can be seen that the consumption sector is one of the major contributors to China's GDP calculations. That sector really has a strong role. 

Meanwhile, the US Dollar Is Slipped Down

Elsewhere, The U.S. dollar turned down in the early hours of Thursday morning trading session. That was based on the information and data released in the market. 

Amid the drag on liquidity ahead of the new year holiday, safe haven currencies (including the U.S. Dollar and Yen) were hit by a sell-off due to a resurgence in risk interest. The U.S. dollar slipped 0.26 percent to 95.90.

The development of Omicron variant infections is the spotlight for investors in a quiet market. The cases of the Omicron variant's COVID reportedly surged in more countries.

This situation made the market was relieved that there was no indication of a tight and widespread lockdown as previously feared. It is a good sign for a further economy. 

The Duration of Isolation Is Now Reduced 

The United States health authorities have even recommended a reduction in the duration of isolation. The Americans who are positive COVID-19 without symptoms is now quite isolated for 5 days only.

That is shorter than the mandatory 10-day isolation policy imposed earlier. The Omicron variant is still rampant, but it failed to significantly affect the market. That is even though The global cases have passed one million cases in two days. 

This condition is a breath of fresh air for some high-risk assets. The Commodity currencies such as the Australian Dollar, New Zealand Dollar, and Canadian Dollar also outperformed the USD in the foreign exchange market.