Lags Broader USD Sell-Off

USD/CNH got close to 7.2500 late in Asia Pac session yesterday, before pulling back sub 7.2300 in the NY session, amid broad USD weakness. We currently track close to this level, which left CNH basically unchanged for Monday's session versus closing levels from Friday. USD/CNY finished up at 7.2260, while the CNY NEER (J.P. Morgan Index) fell 0.18% to 120.67, which is back close to recent lows for the index.

• Some carry over from yesterday's weaker than expected domestic inflation prints likely weighed on CNH and prevented outperformance against a weaker USD trend.
• Thursday delivers June trade figures, with market expectations looking for a further slide in export growth (-10.0% y/y, prior -7.5%). Before that we may get aggregate credit figures for June (release window is now until the 15th of July).
• The Golden Dragon index rallied further in Monday US trade, the index up +1.20%, building on Friday's gains of 3.19%. Onshore equities and the HSI finished higher yesterday, with hopes of an end to the regulatory crackdown on the tech sector helping sentiment.
• Elsewhere, the PBoC and National Financial Regulatory Commission asked financial institutions to ease lending terms for property companies by extending existing loans, with the aim of helping the under pressure property sector (see this link for more details).