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Weaker Chinese private PMI lifts easing expectations and pushes yuan lower

Commerzbank cited July private manufacturing PMI falling to 50.9, and FXStreet data showed USD/CNY and USD/CNH rising to about 6.76.

Reported · Written up by our desk · Central Banks

Commerzbank economist Dr. Henry Hao said China’s private manufacturing momentum weakened further in July, pointing to a private manufacturing PMI drop to 50.9. He linked the reading to signs of slowing factory activity, alongside the official NBS PMI at 49.2.

According to FXStreet, the softer data strengthen expectations for near term monetary easing in China, with markets increasingly pricing in potential adjustments such as LPR support and possible RRR cuts.

FXStreet also noted that the yuan weakened after the report, with both USD/CNY and USD/CNH moving higher to around 6.76.

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