Yuan slips after weak manufacturing PMI

USD/CNY climbed 0.5% to 7.1482 after data showed that the country’s manufacturing sector shrank for a fourth straight month in July, indicating that the world’s second-largest economy was still struggling with a post-COVID recovery.

This weakness is expected to prompt Beijing to announce further stimulus measures to boost the flagging economy.

China’s State Council on Monday announced plans to restore and expand consumption in the automobile, real estate, and services sector, but traders are looking for specifics.