Li Sees Positive Growth & New Urban Jobs, Yi Warns Against Severe Economic Situation

Spot USD/CNH last trades -75 pips at CNH6.9134. The rate has operated comfortably within its recent range, amid little to rock the boat, both locally and globally.

• Initial bearish focus falls on Aug 21 low of CNH6.8936 and a break under that level would expose the lower 2.0% Bolllinger band/channel floor at CNH6.8897/94. Conversely, a move through Aug 20 high of CNH6.9263 would bring Aug 13 high of CNH6.9535 into view.
• Top Chinese officials spoke over the weekend. Premier Li told state media that China wants to achieve positive economic growth this year, while adding 9 million urban jobs.
• Separately, PBoC Gov Yi called the current economic situation "complex and severe" and called upon lenders to support small companies.
• China's banking regulator released a statement noting that officials will support Hong Kong as a financial hub and warned the U.S. against undermining financial stability of the city.
• Worth mentioning that cross-Strait geopolitical tensions continue to simmer. The U.S. showed another gesture of support for Taiwan by sending its envoy to join the self-ruled island's President at a military memorial service.
• Chinese industrial profits will be published on Thursday.