SHANGHAI: China’s yuan was mostly flat against the dollar on Friday, consolidating sharp gains from a rally early this week while investors looked to upcoming domestic economic data for clues on the next move.

China will release next week its closely watched purchasing managers index for November. The data is considered a leading indicator of recovery in the world’s second-largest economy.

Prior to the market opening, the People’s Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at a 5-1/2 month high of 7.1151 per dollar, 61 pips firmer than the previous fix of 7.1212.

The official guidance continued its months-long trend of exceeding market projections, analysts and traders said, which some interpret as a policy warning against the re-emergence of yuan bears.

Friday’s official yuan midpoint was 289 pips firmer than a Reuters estimate of 7.1440 per dollar.

In the spot market, the onshore yuan swung around the 7.15 per dollar level and was changing hands at 7.1497 at midday, 12 pips softer than the previous late-session close.