FX.co ★ Offshore Yuan Steady After PMI Data

The offshore yuan stabilized around 7.16 per dollar on Thursday as market participants assessed the recent PMI data. The Caixin China General Composite PMI shifted back into expansion mode, registering its highest point since March. This uptick was driven by a revival in manufacturing activity, which counterbalanced a deceleration in the services sector hit its lowest in nine months. Earlier in the week, official PMI data presented a nuanced perspective: the manufacturing sector stayed in contraction, albeit showing signs of gradual recovery, while the non-manufacturing sector saw a slight rise, attributable to China's persistent endeavors to spur domestic consumption and rejuvenate its languid economy. Investors are now focusing on a new set of economic reports due next week, with particular attention to inflation rates and trade statistics. Concurrently, the forthcoming Politburo meeting this month is gaining attention, as investors anticipate the introduction of new stimulus initiatives in response to significant challenges, including the impending US tariffs.