USD/CNY weakens as China PMIs beat expectations, PBOC sets 7.0288 fix

USD/CNY faces downward pressure after China's December manufacturing PMI unexpectedly expanded to 50.1, surpassing forecasts and marking a return to growth territory. The official non-manufacturing PMI also showed resilience at 50.2, suggesting broader economic stabilization. The People's Bank of China set the daily reference rate at 7.0288, maintaining a stable stance despite yuan strength. Supporting measures include expanded consumer trade-in subsidies and digital product schemes for 2026, though authorities avoided aggressive housing stimulus, opting instead for measured property tax adjustments. The unexpected PMI improvement contrasts with OPEC+ maintaining output pause amid global oil surplus concerns, potentially limiting commodity-driven yuan support. Technical levels show USD/CNY testing support near 7.02, with resistance at 7.05. Traders should monitor upcoming Chinese economic releases and any policy shifts that could accelerate yuan appreciation against the dollar.