China’s official NBS PMI manufacturing dropped to 50.8 in April, down from 52.0, missed expectation of 51.0. In particular, new export orders plunged sharply to 33.5. But PMI non-manufacturing improved to a three-month high of 53.2, up from 52.3, beat expectation of 52.8. The set of data suggests that China’s economy is on a double-track. Hope of a strong come back in manufacturing is dim as coronavirus pandemic is continuing elsewhere. Global recession will continue to heap on downward pressure in the sector in the coming months.
USD/CNH drops notably today, mainly due to weakness in Dollar. Outlook is unchanged that the pair is staying in consolidation pattern from 7.1953, with rebound from 6.8452 as the second leg. Such rebound has likely completed with three waves up to 7.1649 already. Break of 7.0365 support should add credence to this case and target 6.8452/6.9040 support zone again.