USD/CNY rises as China PMI disappoints, Caixin Manufacturing data awaited

USD/CNY has strengthened 0.2% to 7.2450 following disappointing Chinese manufacturing data, with traders now awaiting the Caixin Manufacturing PMI for July. China's official Manufacturing PMI fell to 49.4 in July, missing expectations and remaining in contraction territory below 50. The Non-Manufacturing PMI also disappointed at 50.2, down from 50.5 previously. The weakness in China's economic indicators has pressured the yuan and other Asia-Pacific currencies, with AUD/USD declining 0.4% given Australia's trade exposure to China. Markets expect the Caixin Manufacturing PMI to show a slight decline but remain in expansion above 50. The divergence between official and Caixin PMIs often reflects different sample compositions, with Caixin focusing more on smaller, private enterprises. Technical resistance for USD/CNY sits at 7.2600, while support holds at 7.2300. Continued weakness in Chinese data could prompt further PBOC easing measures, potentially weakening the yuan further.