USD/CNY Rises After Disappointing China’s PMI

The Chinese yuan fell against the US dollar today as Purchasing Managers’ Indices released today, both official and private, were disappointing. The Forex market was mixed today, without a clear trend. The rest of the week is going to be extremely eventful in terms of macroeconomic releases.
Released today, the seasonally adjusted Caixin manufacturing Purchasing Managers’ Index showed a drop from 53.0 in December to 51.5 in January, significantly below the market expectations of a reading of about 52.6. The report commented on the result:
 

Business conditions faced by Chinese manufacturers improved at the slowest rate for seven months at the start of 2021, according to latest PMI data. Companies signalled softer increases in output and new orders, alongside a renewed decline in new export work, as the coronavirus disease 2019 (COVID-19) pandemic weighed on demand conditions. At the same time, stock shortages and shipping delays led to a further marked deterioration in supplier performance and added further upwards pressure on costs. Consequently, firms raised their selling prices at the steepest rate since mid-2018.

Released over the weekend, the government data showed that the manufacturing PMI dropped to 51.3 in January from 51.9 in the previous month, trailing the median forecast of 51.6. It was the weakest reading since August. Analysts explained the drop by the wave of COVID-19 infections ahead of the Lunar New Year holiday. The non-manufacturing PMI dropped to 52.4 from 55.7. It was the lowest figure in ten months.
USD/CNY rallied from 6.4498 to 6.4771 as of 14:24 GMT today.
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Original from: www.earnforex.com