# Disappointing PMI Suggests PBOC will Ease Further. Policy Divergence to Drive CNY Lower vs USD - ActionForex

> ActionForex reported that China's August NBS PMI showed contraction in non-manufacturing, with the services index falling to 45.2 and new export orders at their lowest since June 2020. The analysis expects the PBOC to cut the reserve requirement ratio and possibly rates. It also argues policy divergence from the Fed points to further yuan weakness.

- Date: 2021-08-31 · published 2021-08-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/45783-disappointing-pmi-suggests-pboc-will-ease-further-policy-divergence-to-drive
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Weaker demand and expected easing point to softer Chinese import demand and a weaker yuan, which raises the cost of imported feed inputs in China. Stimulus could partly offset this later in the year.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2026-06-29 | [PBoC sets USD/CNY fix above forecasts, hinting at managed yuan depreciation as growth concerns linger - VT Markets](https://feedsoft.ai/events/19038-pboc-sets-usd-cny-fix-above-forecasts-hinting-at-managed-yuan-depreciation-as.md) | -0.0% | -0.5% |
| USDCNY | 2022-06-08 | [China’s yuan eases amid concerns of increasing policy divergence - Markets - Business Recorder](https://feedsoft.ai/events/41173-china-s-yuan-eases-amid-concerns-of-increasing-policy-divergence-markets.md) | +1.1% | +0.5% |
| USDCNY | 2026-08-24 | [PBoC sets USD/CNY fixing above Reuters estimate, prompting yuan volatility and derivatives positioning - VT Markets](https://feedsoft.ai/events/18096-pboc-sets-usd-cny-fixing-above-reuters-estimate-prompting-yuan-volatility-and.md) | +0.1% | -0.4% |
| USDCNY | 2018-06-27 | [USD/CNY rises to highest since December 19 - Forex Crunch](https://feedsoft.ai/events/8532-usd-cny-rises-to-highest-since-december-19-forex-crunch.md) | +0.9% | +2.9% |
| USDCNY | 2017-03-15 | [USD/CNH is flashing green as PBOC fixed CNY midpoint at weakest since Mar. 15, 2017 — Octa](https://feedsoft.ai/events/72224-usd-cnh-is-flashing-green-as-pboc-fixed-cny-midpoint-at-weakest-since-mar-15.md) | -0.4% | -0.3% |

## Sources

- actionforex.com: https://www.actionforex.com/action-insight/china-watch/400644-disappotining-pmi-suggests-pboc-will-ease-further-policy-divergence-to-drive-cny-lower-vs-usd/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.