China's PMI slipped to 50.0 in July

The latest PMI report underscores the anaemic momentum in the China's manufacturing industry: 

China released July's official manufacturing PMI on Saturday fell to a six-month low of 50.0 vs 50.2 in June. A sub-index for new export orders slipped below the 50-mark for the first time since mid-2012. Factory output also fell to its lowest in four months to 52.4. The private sector Caixin/Markit China PMI released this morning was revised down to 47.8 from the preliminary reading of 48.2 and down from 49.4 in June. This is the lowest reading in two years, since July 2013. 

"Given downside risks to growth in H2, the bias is for further monetary policy easing and fiscal stimulus. For USD-CNY, it continues to hold steady around the 6.2100 level this morning. CNY stability ahead of the IMF's decision on SDR inclusion is still the dominant factor in the market for now, says Commerzbank.