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Marginally Softer

CNH

Spot USD/CNH has inched higher and last trades +25 pips at CNH6.4449, holding a tight range. Bulls need a clearance of Sep 7 high of CNH6.4648 to gain some momentum, while bears set their sights on Sep 10/3 lows of CNH6.4261/6.4244.

  • The PBOC set their central USD/CNY mid-point at CNY6.4500 today, 3 pips below sell-side estimate.
  • Backlash against China Evergrande Group from homebuyers, retail investors and employees has escalated amid a looming debt crisis.
  • China urged the U.S. to uphold the spirit of last week's phone call between Presidents Xi and Biden and work to repair the bilateral relationship. Meanwhile, Australian Foreign Min Payne complained that China rejected multiple offers of high-level Sino-Aussie talks.
  • Looking ahead, China's economic activity indicators will hit the wires Wednesday. The data will be closely watched as a gauge of the damage wrought by the latest outbreak of Covid-19 Delta variant.

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