USD/CNH weakens as China PMI disappoints at 50.6 vs 50.7 expected

USD/CNH has declined 0.2% to 7.1250 in early Asian trading following China's weaker-than-expected manufacturing data. The Caixin/S&P Global Manufacturing PMI dropped to 50.6 in October from September's 51.2, missing the consensus forecast of 50.7. This marks the slowest expansion in manufacturing activity in recent months, with only the employment component showing improvement. The disappointing data raises concerns about China's economic momentum amid ongoing trade tensions with the United States. The yuan's reaction has been muted as markets await further policy signals from the People's Bank of China, which may need to provide additional stimulus to support growth. Technical indicators show USD/CNH finding support at 7.1200, with resistance at 7.1400. Traders should monitor upcoming Chinese economic releases and any PBOC policy adjustments that could influence the yuan's trajectory against the dollar.