Lags DXY Weakness, Xi & Putin Speaking Today

CNH underperformed the weaker USD tone seen against the majors. USD/CNH fell 0.33% through Thursday's session, versus a ~0.50% decline in the DXY. The pair couldn't break back below 6.9700. We currently track around the 6.9730 level. The CNY NEER still managed to edge higher, rising 0.15% to 125.25 (J.P. Morgan Index).

• Late yesterday China health officials stated the current covid wave is peaking in several cities including Beijing, although is still trending higher in other major districts. They also warned of fresh surges around the China new year period.
• Officials also vowed that fiscal policy will be appropriate to boost economic growth next year. The fiscal deficit and special bond issuance will be optimized, as government investment aids both private sector investment and consumption.
• China President Xi and Russia President Putin will also speak today via video conference to discuss bilateral ties between the two countries.
• The local data calendar just has final current account figures for Q3 today, although official PMIs for December print tomorrow, with market estimates looking for further weakness in both manufacturing (47.8 forecast, 48.0 prior) and non-manufacturing (45.0 forecast 46.7 prior).