Holds Near 7.2600, Underperforms Majors, May Trade Data On Tap Today

USD/CNH sits just below 7.2600 in early Friday dealings. For Thursday's session we were flat against the USD, underperforming the major currencies which mostly traded with a positive bias against the dollar. USD/CNH did see selling interest on moves into the 7.2640/50 region though. Onshore USD/CNY spot finished up at 7.2451, down slightly from end Wednesday levels.

• Broader USD/CNH ranges remain intact, with the 20-day EMA back near 7.2515, the 50-day close to 7.2430. The CNY index basket has tracked modestly lower this week, but remains above May lows.
• On the data front today we have May trade figures. The market expects export growth to improve to 5.7% y/y from 1.5% in April. Imports are forecast at 4.3% y/y (versus 8.4% prior). The trade surplus is projected to hold steady at just above $72bn. May FX reserves also print.
• In the cross asset space, aggregate equity indices were down yesterday, property indices continued to move off recent highs. A Blomberg gauge of developers is now 20% sub May highs.
• For yields, the 10yr CGB remains wedged close to 2.30%, the 2yr at lows of 1.75%.