SHANGHAI, Dec 1 (Reuters) - China"s yuan firmed on Tuesday, with the offshore unit rebounding after a three-day retreat as an upbeat manufacturing survey pointed to a continued recovery in the world"s second-largest economy. Activity in China"s factory sector accelerated at the fastest pace in a decade in November, a private business survey showed on Tuesday. Official data on Monday showed China"s factory activity expanded at the fastest pace in more than three years in November, while growth in the services sector also hit a multi-year high. Analysts said continued economic recovery from coronavirus disruptions, better COVID-19 containment and steady capital inflows have supported the yuan in recent months. The offshore yuan was trading at 6.5692 per dollar at midday, 158 pips firmer than the previous close of 6.5850, after falling for the past three sessions. Prior to the onshore market"s open, the People"s Bank of China set the midpoint rate at 6.5921 yuan per dollar, 139 pips weaker than the previous fix of 6.5782. In spot market, the yuan opened at 6.5800 per dollar and was changing hands at 6.5770 at midday, 22 pips firmer than the previous late session close. The onshore yuan has strengthened more than 8% since late May, and has logged six consecutive monthly gains since then, the longest monthly winning streak since late 2014. Traders said the yuan could strengthen further after a short-term consolidation, as the dollar would remain weak due to expectations of more easing policies from the U.S. Federal Reserve. A slowing recovery and a surging pandemic mean the United States is entering a "challenging" few months, with the potential deployment of a vaccine still facing the hurdles of production and mass distribution before its impact on the economy becomes clear, Fed chair Jerome Powell said on Monday. Increased global risk appetite in December as a result of vaccine progress could further pressure the greenback, while the dollar index tends to be weak in December, China Zheshang Bank analysts said in a report. "The USD/CNY could trade in a range of 6.5-6.6 in December, and could further test the level of 6.4-6.45, if the 6.5 level is broken through." The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 95.47, firmer than the previous day"s 95.3. The global dollar index fell to 91.821 from the previous close of 91.949. The yuan market at 4:03AM GMT: ONSHORE SPOT: Item Current Previous Change PBOC midpoint 6.5921 6.5782 -0.21% Spot yuan 6.577 6.5792 0.03% Divergence from -0.23% midpoint* Spot change YTD 5.87% Spot change since 2005 25.84% revaluation Key indexes: Item Current Previous Change Thomson 95.47 95.3 0.2 Reuters/HKEX CNH index Dollar index 91.821 91.949 -0.1 *Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People"s Bank of China (PBOC) allows the exchange rate to rise or fall 2% from official midpoint rate it sets each morning. OFFSHORE CNH MARKET Instrument Current Difference from onshore Offshore spot yuan 6.5675 0.14% * Offshore 6.7482 -2.31% non-deliverable forwards ** *Premium for offshore spot over onshore **Figure reflects difference from PBOC"s official midpoint, since non-deliverable forwards are settled against the midpoint. . (Reporting by Luoyan Liu, Hanxiao and Andrew Galbraith) Our Standards: The Thomson Reuters Trust Principles.