Offshore yuan steadies on mixed PMI data

The offshore yuan steadied to around 7.13 per dollar on Tuesday, pausing after two straight sessions of gains, as investors assessed fresh PMI data pointing to mixed signals in China’s economy.

The official survey showed a slower pace of contraction in manufacturing activity, marking its best reading since March but still signaling continued weakness as factories grapple with subdued domestic demand and pressure from higher US tariffs.

Additionally, services activity softened slightly, while the overall composite index held steady, pointing to a patchy recovery.

In contrast, the private RatingDog survey pointed to modest growth in factory activity, its strongest in six months, suggesting some resilience in smaller and export-oriented firms.

The mixed signals highlighted challenges for China’s economy, where policymakers have introduced targeted support for demand but remain cautious about rolling out large-scale stimulus despite headwinds from sluggish consumption and trade frictions.