Awaiting Data Dump

USD/CNH has been rangebound this morning, last trades -17 pips at CNH6.6922. Quarterly GDP & monthly economic activity indicators headline in China today and are due for release within just shy of two hours.

• PBoC Gov Yi said on Sunday that China's economy will expand about 2% this year after the country managed to contain the spread of coronavirus. He noted that China's policy efforts will focus on supporting SMEs, while making sure that the role of domestic demand in driving economic recovery increases. On the yuan front, Yi attributed its appreciation vs. the greenback to interest rate differentials and said that the process should be left to market forces.
• Elsewhere, the WSJ reported that China warned the U.S. that its officials may detain American nationals in response to the DoJ's prosecution of some Chinese academics affiliated with the PLA. Sources told the WSJ that China communicated this message repeatedly, via several diplomatic channels.
• China's National People's Congress adopted legislation restricting sensitive exports on national security basis. The law gives Beijing new tools to retaliate against U.S. moves against Chinese tech giants.
• The Global Times downplayed suggestions that China might be waging a "shadow trade war" against Australia, questioning the credibility of market sources cited by Australian media. The newspaper attributed bilateral trade tensions to the "hostile attitude" of the Morrison government.
• Bears look for a fall through Oct 9 cycle low of CNH6.6787, which would clear the way to Mar 21, 2019 low of CNH6.6704, a key support level. Bulls need a jump above Oct 13 high of CNH6.7653 before targeting Sep 24 high of CNH6.8462.
• Looking further afield, the PBoC's LPR fixing is due Tuesday.