CNH: USD/CNH Up On Firmer US Yields, But Still Sub Pre Debate Levels

USD/CNH tracks near 7.1275 in early Thursday dealings. Wednesday US session highs were just above 7.1325, which came after the firmer US core CPI print. Earlier highs, pre the US Presidential debate, which printed at 7.1367, remained intact. Late lows from yesterday in the pair were at 7.1076. Spot USD/CNY finished up at 7.1194. 

• CNH lost a little ground against the USD for Wednesday's session, while the CNY CFETS index tracker edged down slightly to 98.05. We remain broadly within recent ranges though, albeit with a modest positive bias re-established for USD/CNH over USD/CNY spot.
• Broader USD sentiment was aided through US trade, with firmer front end yields post the stronger than expected core CPI print. US-CH yield differentials have based somewhat in recent sessions. China government bond yields remain skewed to the downside, 2yr ending yesterday at 1.32%, 10yr just under 2.10%. Local equities ended softer, the CSI 300 down 0.30%.
• USD/CNH risk reversals remained skewed higher for 3 (last 0.18) and 6 (last 0.3625) month tenors. The 6 month is a little off recent highs.
• Vice President Harris was seen as the winner of yesterday's debate, although by no means was it seen as a knock out blow for former President Trump ahead of the November election.
• On the data front, we still await August aggregate financing/new loans data. On Saturday we get August home prices and activity figures (IP, retail sales etc).