Chinese Yuan Gains vs. US Dollar on Surprisingly Good Manufacturing PMI, Loses Gains Later

The Chinese yuan rallied against the US dollar intraday but erased its gains by now. The initial rally was a result of a surprisingly good report about China’s manufacturing from Markit Economics, though government data released over the weekend was nowhere near as good. In fact, USD/CNY rallied just recently.
The Caixin China Manufacturing PMI climbed from 49.9 in July to 50.4 in August, bouncing into expansionary territory. That was a pleasant surprise to markets as forecasts had not predicted any significant change to the index.
The China Federation of Logistics and Purchasing released its own official manufacturing PMI on Saturday. It showed a drop from 49.7 in July to 49.5 in August, meaning that the sector was contracting with an accelerated pace. On the other hand, the official services PMI edged up a bit from 53.7 to 53.8, whereas markets were expecting it to fall a notch to 53.6.
USD/CNY went up from 7.1751 to 7.1903 as of 16:21 GMT today after falling to the daily low of 7.1630 earlier.

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