• USD/CNH picks up bids to refresh intraday high after downbeat China Caixin Manufacturing PMI.
• China Caixin Manufacturing PMI slides below 50.0 level in July, fails to trace NBS counterpart.
• China State Planner NDRC announces more measures to defend economic growth.
• US ISM Manufacturing PMI, JOLTS Job Openings eyed for clear directions; risk catalysts are also important amid US-China tension.

USD/CNH renews its intraday high near 7.1740 before retreating to around 7.1700 by the press time of early Tuesday as markets react to the downbeat China activity data amid broad US Dollar strength. In doing so, the offshore Chinese Yuan (CNH) pair prints the first daily gains in three, up 0.31% intraday by the press time.

China Caixin Manufacturing PMI for July fails to trace its upbeat NBS counterpart while declining to 49.2 for July from 50.5 prior, versus 50.3 market forecasts. With this, the private activity gauge drops to the lowest level since January.

It’s worth noting that China's state planner National Development and Reform Commission (NDRC) issued a notice to promote the high-quality development of private investment earlier in the day. That said, Chinese authorities also announced measures to boost consumption on Monday and bolstered the market sentiment.

Despite the risk-on mood, firmer yields and the US Dollar’s preparations for this week’s top-tier employment and activity data propel the USD/CNH pair of late.

On the same line could be the fears of the Sino-America tensions as China's Commerce Ministry renews the Sino-US trade war fears by announcing measures to limit exports of some drones and drone-related equipment, starting from September 01, by citing the “national security and interests” late Monday suggests Reuters.

On Monday, the US Dollar Index (DXY) managed to remain firmer, grinding higher towards 102.00 by the press time, despite witnessing mixed US data. That said, Dallas Fed Manufacturing Business Index improves to -20.0 for July from -23.2 prior versus -26.3 expected whereas Chicago PMI rose to 42.8 from 41.5 prior versus 43.0 market forecasts. In doing so, the DXY ignores Friday’s softer prints of US inflation clues and the weekend comments from Minneapolis Fed President Neel Kashkari’s criticism of higher interest rates.

Talking about the mood, S&P500 Futures trace Wall Street and print mild gains by the press time whereas the US 10-year and two-year Treasury bond yields edge higher of late.

Looking ahead, the mixed mood can help the offshore Yuan sellers ahead of the US US ISM Manufacturing PMI for July and JOLTS Job Opening for June.

Technical analysis

A six-week-old symmetrical triangle restricts immediate USD/CNH moves between 7.2040 and 1.1350.