CNH Garners Strength Despite Weaker Than Forecast PBoC Fix

Spot USD/CNH has retreated and last operates -163 pips at CNH6.6926, despite a slightly weaker than expected PBoC fix. Broader greenback sales have contributed to the move, with month-end flows in focus. Domestically, eyes are on communique surrounding China's next five-year economic plan.

• Initial comments after the four-day meeting of CPC Central Committee offered little new, stressing China's desire to become a global technological powerhouse, promote greater reliance on domestic market as a major engine of economic expansion and focus on the quality and sustainability of growth.
• Losses past initial support from Oct 21 low of CNH6.6278 would signal potential for a deeper sell-off, opening up the 61.8% retracement of the Mar 27, 2018 - May 27, 2020 rally/Jul 10, 2018 low/round figure support at CNH6.6030/04/00. Bulls need a rebound above CNH6.7378, the high print of Oct 28, before targeting the 23.6% recovery of the 2020 range/Oct 13 high at CNH6.7620/53.
• China's PMI data will begin to trickle in tomorrow. Official readings are due Saturday, Caixin M'fing gauge comes out Monday, while the remaining two Caixin indices will be published Wednesday. Next Friday, China will release flash Q3 BoP current account balance.
• Worth noting that China International Import Expo kicks off on Nov 4 with a keynote address from Prex Xi.