China’s official PMI Manufacturing rose to 51.1 in July, up from 50.9, slightly above expectation of 51.0. That’s the highest reading since March too. Looking at some details, production rose 0.1 to 54.0. New orders also improved by 0.3 to 51.7. New export orders rose notably by 5.8 to 48.4, but stayed in contraction. PMI Non-Manufacturing retreated mildly to 52.3, down from 54.4, but beat expectation of 51.2. Overall, the set of data suggests that recovery in on track, but it will remain a long road back to pre-pandemic levels.
USD/CNH drops mildly in Asian session today, following general weakness in Dollar. Prior recovery from 0.6933 was limited at 7.0298, below 7.0396 support turned resistance. The development suggests that fall from 7.1961 is still in progress. It’s seen as the third leg of the pattern from 7.1953 and break of 0.6933 would pave the way back to 6.8452 support.
