CNH Remains Within Recent Ranges, Dec Inflation Data In Focus Today

USD/CNH broadly remains within recent ranges. The pair got close to 7.1600 prior to the US CPI print, before rebounding to 7.1835/40. In early Friday trade we track near 7.1750, having risen 0.11% for Thursday's session in CNH terms. This is line with lower BBDXY levels. USD/CNY ended at 7.1667, while the NEER J.P. Morgan index) rose a touch to 123.395.

• State owned banks were reportedly USD sellers in the onshore market yesterday (BBG). Recent highs in USD/CNY spot rest near 7.1770.
• Focus today will be on the Dec inflation print. CPI is expected at -0.4%y/y, against a prior -0.5% outcome. For the PPI the projection is -2.6% y/y, against -3.0% prior. Note the consensus for next Monday's 1yr MLF is a 10bps cut to 2.40% (15 economists surveyed by BBG).
• Dec trade figures are also due. Export growth is forecast at 1.5% y/y (prior 0.5%), while imports are projected at -0.5% y/y (prior -0.6%). The trade surplus is expected to improve to $75.6bn (prior $68.40bn). We are also still waiting for Dec aggregate finance/new loans data.
• In the equity space, sentiment was better the Golden Dragon index up 1.05% in US trade, the first rise in over a week. This followed the CSI 300 being up 0.57% in onshore trade yesterday.