CNH Underperforms Weaker USD Indices, Industrial Profits On Tap Today

USD/CNH spent most of the post Asia close pushing higher. From lows around 6.9240 we got back above 6.9450 late in NY trade. We are slightly off these levels currently, last near 6.9400. For Wednesday's session, CNH was basically unchanged, an underperformance relative to weaker USD indices. Not surprisingly, on this basis, the CNY NEER fell to 124.49, -0.18% in terms of the J.P. Morgan index. This is fresh lows back to early Dec last year.

• On the data front today, we have industrial profits for Mar. There is no consensus but the prior read was -22.9%. Given renewed focus on recent equity underperformance in China the print may come under more focus than usual today.
• To recap, the CSI 300 lost a little ground yesterday, while in Wednesday trade, the China Dragon index managed its first gain in 8 sessions, rising 0.97%.
• News flow post the Asia close was also dominated by President Xi's call with Ukrainian leader Zelenskyy. This was the first communication between the two leaders since Russia's invasion last year. The Ukrainian leader stated after the meeting there can be no peace at the expense of territorial compromises.