The offshore yuan traded steadily around 7.16 per US dollar on Thursday, as investors assessed China’s latest PMI data and looked ahead to upcoming economic indicators. The Caixin China General Composite PMI climbed back into expansionary territory, marking its strongest reading since March, driven largely by a rebound in manufacturing activity.

However, the strength in manufacturing was tempered by a sharp slowdown in the services sector, which dropped to a nine-month low, highlighting uneven momentum in the world’s second-largest economy. Earlier this week, official PMI data showed manufacturing remained in contraction, albeit with signs of gradual improvement, while non-manufacturing activity posted a modest rise — suggesting that Beijing’s efforts to stimulate domestic demand are having a limited effect so far.

Investors are now watching closely for new inflation and trade figures due next week, which could offer more clarity on China’s near-term economic path. Expectations are also building around the upcoming Politburo meeting, where markets are hoping for fresh stimulus measures in response to ongoing economic headwinds, including potential US tariffs and weak internal demand.

As economic signals remain mixed, currency traders are cautious, keeping the yuan largely range-bound while waiting for stronger policy or data-driven cues to drive direction.