Yuan Advances as China’s Manufacturing Grows

Chinese yuan denominationsThe Chinese yuan went higher today after a report showed that China’s manufacturing expanded for the first time in a year, suggesting that the Asian economy may avoid “hard landing”.

The Chinese manufacturing Purchasing Managers’ Index grew from 49.5 to 50.4 in November, reaching the highest level in 13 months. That was the first month of growth since November 2011. The report said:

    As November’s flash reading of HSBC manufacturing PMI bounced back to the expansionary territory for the first time in 13 months, this confirms that the economic recovery continues to gain momentum towards the year end. However, it is still the early stage of recovery and global economic growth remains fragile. This calls for a continuation of policy easing to strengthen the recovery.

USD/CNY was down from 6.2350 to 6.2306 as of 10:27 GMT today