Offshore Yuan Slips, Evergrande Saga Under Scrutiny

Spot USD/CNH crept higher in early Asia-Pac trade as Wednesday's monetary policy decision from U.S. FOMC continued to reverberate, but trimmed gains as the session progressed. The rate last sits +56 pips at CNH6.4718.

• The PBOC set their central USD/CNY mid-point at CNY6.4749, just 4 pips above sell-side estimate.
• Headlines surrounding the Evergrande situation continue to steal the limelight as the $83.5mn coupon payment deadline for the company's 8.25% 2022 dollar note looms large. Recall that the coupon has a 30-day grace period before a missed payment constitutes a default.
• China's State Council reiterated their call for "cross-cyclical" adjustments in guiding economic policy, adding that the gov't intends to stabilise market expectations and will look into measures to boost consumption.
• Bulls look to a move through Sep 20 high of CNH6.4880, which would clear the way to Aug 20 high of CNH6.5102. Bears need a dip through the 100-DMA at CNH6.4525 before taking aim at the CNH6.4261-44 area, which limited losses earlier this month.