Despite the unfolding concerns facing the Chinese economy, the Chinese National Bureau of Statistic's official Manufacturing Purchasing Managers’ Index came in at 51.2 for May, higher than the 51.0 expected by economists surveyed by Reuters while matching the April figure of 51.2.
The strong growth in manufacturing came on the back of a substantial increase in steel activity. Another survey conducted by the China Federation of Logistics and Purchasing showed the steel PMI rallied to 54.8 in May from 49.1 last month, the fastest pace of growth reported in a year.
China's official services PMI also edged higher to 54.5 from 54.0 in April, with any figure below 50.0 indicating contraction.
USDCNH is tumbling in early Wednesday trade, with the pair breaking below a key support zone to last trade around 6.7800.