USD/CNY falls as China services PMI hits 3-month high at 52.3

USD/CNY declined 0.2% to 7.2450 following China's stronger-than-expected services PMI data for January. The Services Business Activity Index rose to 52.3 from December's 52.0, marking a three-month high and indicating robust expansion in the services sector. The improvement was driven by accelerating new orders and a notable return to growth in export-related business, suggesting strengthening domestic and international demand. This broad-based acceleration supports the yuan as China's economic recovery gains momentum beyond manufacturing. Technical indicators show USD/CNY testing support at 7.2400, with the 50-day moving average at 7.2350 providing the next key level. A sustained break below could target 7.2200. The positive PMI data reinforces expectations that China's economy is stabilizing, potentially attracting foreign capital inflows and supporting further yuan appreciation against the dollar in the near term.