Caixin M'fing PMI Miss Fails To Move Offshore Yuan

Spot USD/CNH wobbles around neutral levels, last changes hands at CNH6.3554. Bears look for a break under Mar 31 low of CNH6.3452 before targeting Mar 8 low of CNH6.3124. On the flip side, bulls look for a jump above Mar 28 high of CNH6.3983 before taking aim at the 200-DMA/Mar 15 high at CNH6.4071/6.4108.

• Official communique from the latest CPC Politburo meeting offered little in the way of notable insights, with party leaders issuing their shortest and least detailed statement during President Xi's tenure. The contents of Politburo meetings are typically kept under a veil of secrecy, but the readouts usually outlined the general topics of deliberations.
• The results of the latest Caixin Manufacturing PMI survey provided further evidence that the sector fell into contraction last March. Headline index retreated to 48.1 from 50.4 recorded in February, missing the median estimate of 49.9. The results of the Caixin survey focusing on smaller, private, export-oriented companies comes on the heels of the release of official Manufacturing PMI, which eased to 49.5 in March from 50.2 prior. Caixin commented that Chinese policymakers are now facing "double challenges of precision" in controlling the outbreak of Omicron in a targeted yet efficient way and deploying fine-tuned fiscal and monetary policy support to stabilise market expectations.
• Note that Caixin Services PMI will be published next Wednesday. Official data from earlier this week showed that the non-manufacturing sector unexpectedly slipped into contraction last month, with BBG survey of analysts pointing to similar expectations regarding upcoming Caixin data.