CNH Losses Ground But Outperforms Broader USD Strength, Inflation & Trade Data Out Today

MNI (Australia) USD/CNH got above 7.3100 in NY trade, post the US CPI print. The pair couldn't get beyond the 7.3130 region and we drifted lower into the close. We currently track near 7.3100, with CNH losing 0.12% for Thursday's session (outperforming broader USD gains against the majors). USD/CNY finished at 7.3060, while the CNY NEER rebounded 0.25%, back to 123.74 (J.P. Morgan Index).

• The focus today is on the September CPI and trade figure prints. The market expects modest improvement in price and trade trends. September export figures for South Korea and Taiwan surprised on the upside, which points to some improvement in the broader external backdrop (see this link).
• In the equity space we had a sharp pull back in the Golden Dragon index in Thursday US trade (down -3.42%), largely unwinding gains from the previous two sessions. To recap, the CSI 300 finished onshore trade up nearly 1% and the index is back above 3700. Official support for state owned banks aiding sentiment.
• Elsewhere, CNN noted that debt concerns around property group Evergrande is impacting some regional banking sentiment (see this link for more details).
• While Reuters reported that regulations have been tightened on offshore brokerage accounts (see this link). The move is seen as a step up in preventing investors from by-passing forex controls.