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Markets Await NPC

CNH

The PBOC fixed USD/CNY at 6.4625, 10 pips above sell-side estimates. Offshore yuan is weaker amid some strength in the greenback. USD/CNH last up 64 pips at 6.4758, from session lows of 6.4640. The pair has moved around its 50-day moving average at 6.4710.

  • Markets await policy cues on the broader economy from this week's annual gathering of the National People's Congress. Markets will watch for economic goals for 2021 as well as China's next five-year plan for economic development.
  • The yuan to trade in a narrow range this week, as is the norm for domestic financial markets during and before key economic and political events.
  • Elsewhere there have been some comments from the CBIRC that China is working to reduce the level of leverage, risks in the financial system are controllable, and the government aims to stabilize the property market.

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