China's Trade Surplus Soars To All-Time High, PBOC Resume Softer Fixings

Spot USD/CNH reopened a tad higher, despite strong trade data released out of China over the weekend. The pair last operates +23 pips at CNH6.3968, with bulls looking for gains past Oct 29 high of CNH6.4104 towards Oct 19 high of CNH6.4290. Conversely, a fall through Oct 25 low of CNH6.3748 would turn focus to CNH6.3687, which represents Oct 19 low & trendline support.

• China posted a record monthly trade surplus in October amid robust growth in shipments coupled with below-forecast imports growth.
• The PBOC resumed pushbacks against yuan strength and set their central USD/CNY mid-point at CNY6.3959, 22 pips above sell-side estimate. The average of misses this month has been largest since Jan.
• Elsewhere, China's foreign reserves swelled by $17bn to $3.2176tn in October, surpassing market expectations. China's FX regulator attributed the increase to changes in foreign-exchange rates.
• Participants look ahead to China's monthly inflation data, due Wednesday.
• The Communist Party of China begin their closed-doors plenary session today. The four-week gathering of senior party members is expected to pave the way for Xi Jinping to seek a third term in command of the party and the country.