Chinese Yuan Strengthens Against the US Dollar as Chinese Manufacturing Expands - Forex News by FX Leaders

Chinese Yuan Strengthens Against the US Dollar as Chinese Manufacturing Expands

Posted Monday, September 2, 2019 by
Arslan Butt • 1 min read

On Monday, the Chinese yuan has strengthened slightly against the US dollar on the release of the Caixin/Markit Manufacturing PMI for August. At the time of writing, USD/CNH is trading at around 7.166.

The Caixin China General Manufacturing PMI rose to 50.4 in August from 49.9 in July, indicating that the sector was in expansion. The growth in the manufacturing sector was attributed to firms registering the fastest increase in production in five months.

Total new orders received by Chinese manufacturers during August remained steady. While export orders declined, domestic demand rose higher, supporting this figure and keeping it steady when compared with July’s figures.

USD/CNH has also turned bearish following the latest round of tariffs implemented by the US on Chinese imports, while China has imposed a 5% levy on WTI. This latest development in the trade war has caused the US dollar to weaken, driving this forex pair lower.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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