(MNI Australia) USD/CNH dips towards 6.8600 were supported post the Asia close, while in NY trade we got to 6.8800. We last tracked just above 6.8700, with the currency broadly following USD trends. The CNY NEER edged lower, back to the low 126.00 region (J.P. Morgan Index), but is within recent ranges.

• USD/CNH remains above the 50 and 200 day EMAs, which both come in the low 6.8600 region, on the topside the 100-day comes in close to 6.9050.
• The local data calendar is empty (although FDI related figures may print, although this is unlikely to move sentiment). Early next week the 5-yr and 1yr LP rate outcomes are due, although no change is expected.
• Focus is likely to rest on the geopolitical front, with talks potentially taking place between US Secretary of State Blinken and Wang Yi, China's top diplomat, as both attend a Munich Security Conference, which kicks off today.
• US President Biden also stated he will talk to China President Xi following the recent Balloon saga, although no timeframe on a call was given.
• The China authorities also fined and sanctioned Lockheed Martin and Raytheon over arm sales to Taiwan.