The Chinese yuan is trading sideways against the US dollar, but there is a lot of movement against the euro. The yuan has been one of the top-performing Asian currencies so far this year, and the offshore yuan could maintain its positive momentum after economic activity slightly topped market estimates last month.
In February, the National Bureau of Statistics (NBS) manufacturing purchasing managers’ index (PMI) expanded to 50.2, higher than the median forecast of 49.9 – anything above 50 indicates expansion. This is also up from 50.1 in January.
The non-manufacturing PMI expanded 51.6, up from 51.1 in the previous month. Last month, the NBS General PMI jumped 51.2, up from 51.0 in January.
The Caixin manufacturing PMI, a private-sector measurement, swelled 50.4 in February, up from 49.1 in January. Economists had penciled in a reading of 49.3.
Caixin will release the services and composite PMI readings on Wednesday.
Global financial markets have been focused on the Ukraine-Russia war, which entered into its sixth day on Tuesday. The belief that this military conflict could drag on for quite some time, especially after reports show a 40-mile Russian convoy heading toward the Ukraine capital of Kyiv.
China has weighed into the invasion, noting that Russia’s “legitimate security demands should be taken seriously and properly addressed.”
“We express regret over the casualties. The current situation is not something we want to see,” Foreign Ministry spokesperson Wang Wenbin said in a statement. “It is imperative that all parties maintain the necessary restraint to prevent the situation on the ground from further deteriorating or even going out of control, and make efforts to effectively safeguard civilians’ lives and property, especially to prevent a large-scale humanitarian crisis.”
Right now, Beijing has endorsed Putin’s objections to NATO’s eastward expansion, while Moscow supported China’s claim to Taiwan.
The USD/CNY currency pair edged up 0.04% to 6.3121, from an opening of 6.3093, at 15:20 GMT on Tuesday. The EUR/CNY tumbled 0.82% to 7.0206, from an opening of 7.0773.