- USD/CNH has recovered from session lows, possibly on the back of a weaker-than-expected China data.
- China’s manufacturing activity contracted for the third straight month in February.
The USD/CNH pair is currently trading at 6.6815, having clocked a low of 6.6755 earlier today.
The recovery from session lows could be associated with the dismal China data released at 01:00 GMT, which showed the manufacturing activity in the world’s second-largest economy contracted for the third month straight in February.
The manufacturing Purchasing Managers’ Index (PMI) slipped to 49.2 in February, missing the forecasted print of 49.5 by a narrow margin.
The third straight below-50 reading indicates a sustained deterioration in the activity, despite the government’s stimulus efforts. That, however, is hardly surprising, as the export units have been facing a tough time, courtesy of the US-China trade war.
Looking forward, the pair could see a stronger oversold bounce, if the resistance at 6.6820 (descending triangle hurdle) is convincingly scaled.
Technical Levels
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