Fix Awaited

USD/CNH is currently 11 pips higher at 6.4913, the pair dropped with the USD after the BoC tapered, bottoming out at 6.4879. Markets will await the PBOC USD/CNY mid-point, yesterday the mid-point was set at 6.5046, 57 pips lower than the previous session. Should the fix come below 6.50 the decline in USD/CNH could accelerate.

• A virtual climate change summit led by US President Biden starts today, there is chance that Chinese President Xi will address plans regarding emissions during his appearance according to US Special Presidential Envoy for Climate Kerry.
• A meeting is said to have taken place at the Boao Economic Forum between US and Chinese companies on how to soothe tensions between the two countries, according to reports both sides agreed that politicization of trade relations does not benefit either side. While the talks are not at the highest level, it indicates movement in the right direction. Back in the US though, congress is said to be gathering momentum for legislation that addresses competitiveness between the US and China. The Senate Foreign Relations Committee, in a 21-1 vote, approved a bill aimed at China on a number of fronts
• The Australian government has announced it has cancelled the agreement between China's Belt and Road Initiative and the Victoria state government saying the arrangements are not consisted with Australia's foreign policy. The move could serve to further increase tensions between the two countries.