USD/CNH hits lowest since October 2024 – BBH

USD/CNH dips to levels not seen since October 2024 as China’s private-sector manufacturing contracts, though the Chinese Yuan’s (CNH) undervaluation limits economic strain, BBH FX analysts report.

China manufacturing contracts in November

"USD/CNH edged down to its lowest level since October 2024, eyeing psychological support at 7.0000. China private-sector manufacturing sector deteriorates in November."

"The RatingDog manufacturing PMI fell to 49.9 vs. 50.6 in October, signaling the first contraction in activity since July. China can tolerate a stronger currency with limited damage to the manufacturing sector as the yuan remains deeply undervalued."