FTSE Announcement Boosts Exp. Of Capital Inflows, Supports Yuan

Spot USD/CNH dipped as FTSE Russell said they will include Chinese Government Bonds in the World Government Bond Index. Analysts estimate that the addition of Chinese debt to the trillion-dollar major benchmark index may attract more than $100bn in foreign capital inflows. The pair's recovery was arrested by a marginally stronger than expected PBoC fix (even as the central USD/CNY mid-point was pushed higher still) and USD/CNH steadied in negative territory. It last trades -61 pips at CNH6.8199.

• A U.S. court set Friday as a deadline for the White House to delay a U.S. ban on TikTok or file papers opposing ByteDance's injunction. The U.S. ban had been set to take effect just before midnight on Sunday. The Global Times ran another op-ed criticising U.S. actions vs. TikTok as "highway robbery".
• A fall through Sep 22 low of CNH6.7725 would give bears a green light for targeting Sep 16 cycle low of CNH6.7424. On the flip side, bulls need a clearance of Sep 24 high of CNH6.8462 to bring Sep 9 high of CNH6.8610 into play.
• China will release its final BoP current account balance for Q2 at some point later today. Next week, focus turns to the three official PMI readings & Caixin M'fing PMI, all due Wednesday.