Chinese Yuan appreciates despite lower than expected manufacturing PMI data

• Pair is currently trading at 6.5397 levels.
   
• It made intraday high at 6.5510 and low at 6.5414 levels.
   
• Today China's manufacturing Purchasing Managers' Index slipped from 49.4 in January to 49.0 last month, the weakest reading in more than four years.
   
• In addition Caixin manufacturing PMI data released with negative numbers at 48.0 m/m vs 48.4 previous release.
   
• Overnight PBoC cuts banks' reserve requirement reserve ratio by 50 bps to 17%.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.57 levels.
   
• Alternatively, current downfall will take the parity around 6.5286/6.5143 levels.

Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.