CNH Firms, Golden Week Holiday Period Starts Today

USD/CNH continued to pull back post the Asia close on Thursday. The pair got close to 7.2900 before some support emerged late in NY trade. We last tracked near 7.2940, a CNH gain of 0.40% for Thursday's session, in line with the broader USD dip of 0.42% (BBDXY index). USD/CNY finished up at 7.2980, while the CNY NEER (J.P. Morgan Index) eased modestly to 123.57.

• A reminder that China's Golden Week holiday kicks off today and runs through to next Friday. Onshore markets re-open on Monday the 9th of October.
• Note we still get official PMI prints tomorrow. The consensus for the manufacturing PMI is to rise to 50.1 from 49.7 in August. The non-manufacturing PMI is also expected to improve to 51.6 (from 51.0 prior).
• Some modest optimism has returned around the growth backdrop, aided by the profits data earlier this week. Some sell-side analysts have raised their GDP projections as a result. This has likely helped CNH sentiment at the margins.
• We still had a weaker equity close though yesterday. To recap, the CSI 300 fell 0.30%. In offshore trade, the Golden Dragon index rose 0.27% during Thursday US trading, the second straight gain.