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fxJul 3, 2026, 6:51 PM

Societe Generale: Yuan Bulls Extend Gains on Strong China PMI

Societe Generale notes that stronger-than-expected China PMI data supports slow but steady growth, reducing the need for PBoC easing and boosting the yuan. USD/CNY has fallen back below its 50-day moving average.

USDCNY

Societe Generale highlights that stronger-than-expected China PMI data indicate slow but steady economic growth, which reduces the urgency for the People's Bank of China to ease monetary policy.

As a result, the yuan has strengthened, with USD/CNY falling back below its 50-day moving average. The bank attributes yuan strength to robust exports, supported by the global AI demand cycle.

Source: FXStreet Forex News