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Extends Gains Ahead of NHC Briefing

CNH

USD/CNH got a low of 7.1755 before stabilizing. The pair was last close to 7.1900, -0.80% for the session. We are below Friday's closing level of 7.1940. The latest round of USD weakness appeared to coincide with headlines that the China National Health Commission (NHC) will hold a press briefing at 3pm local time (7:00am BST).

  • The topic of the briefing is implementation of covid prevention and control measures. The market may be hopeful of eased covid control measures.
  • The equity space is continuing to see gains as well, with the main Hong Kong bourse up 4%. The CSI 300 is near +3% for the session, while the won has been the main beneficiary in the Asia FX space (+1.20% to 1325 for the 1 month NDF).

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