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CNH Firms Early, As More Cities Ease Restrictions, Caixin Services PMI Out Today

CNH

MNI (Australia) - CNH is starting the week off firmly. USD/CNH hit fresh lows of 7.0030 before edging slightly higher (last at 7.0070 level), still down around 0.20% from closing levels at the end of last week. The CNY NEER outperformed on Friday, rising 0.33% per the J.P. Morgan index/ Over the weekend major China cities announced a further easing of Covid curbs.

  • The easier restrictions mostly centred on no longer requiring a PCR test to enter outdoor public venues or ride on public transport. Major cities, including Shanghai announced shifts over the weekend. This followed moves by other major cities late last week. Covid case numbers continued to drift lower from recent highs.
  • This backdrop is likely to keep re-opening trades firmly in focus for markets, note the China Dragon index rebounded 5.39% on Friday, bringing last week's gains to 22.40%.
  • We do have the Caixin services PMI out today, although it may not move market sentiment. The market expects a 48.0 print, versus 48.4 last month. The Caixin composite PMI will also print, 48.3 was the prior outcome.

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