Hovers Around 100-DMA

Offshore yuan slightly weaker in Asia, USD/CNH holding most of Tuesday's losses. The pair declined on Tuesday, closing some 112 pips lower after finding support around 6.4470. The move took CNH post its 100-DMA to hit the strongest level since June, CNH 1-month risk reversals fell the sixth out of seven sessions to 0.4575%. The rate last up 48 pips at 6.4589, just above the 100-DMA at 6.4579.

• There was limited reaction to Caixin manufacturing PMI, the August print came in at 49.2, below estimates of 50.1. Yesterday's official PMI saw both the manufacturing and non-manufacturing measure slip, though the latter fell into negative territory for the first time since March 2020. The Caixin release highlighted modest declines in news orders and output, a deepening of supply chain issues, as well as lower purchasing activity and staffing levels for companies.
• On the geopolitical front markets continue to digest comments from Chinese ambassador to the US Qin Gang earlier, Qin said China is willing to improve its dialogue with the US on several areas such as diplomacy, economy, finance, law enforcement and military.