MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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Offshore Yuan Weakens On Shenzhen Lockdown, Weak Bias In PBOC Fix

CNH

Spot USD/CNH has operated in positive territory, blipping higher in the wake of a weaker than expected yuan fixing. The rate trades +60 pips at CNH6.3640 at typing, with bulls looking to a move through Feb 8 high of CNH6.3763 and towards Jan 31 high of CNH6.3864. Bears would be pleased by a dip through Mar 8 low of CNH6.3124 before targeting Feb 24 low of CNH6.3060.

  • China's central bank set the yuan reference rate at CNH6.3506, 150 pips above sell-side estimate, indicating its preference for a softer yuan. Worth noting that the weak fixing came on the heels of the redback's sharp sell-off in the previous trading session.
  • The spreading outbreak of Covid-19 has prompted the authorities to tighten countermeasures in several localities across the country. The tech hub of Shenzhen has been placed under a snap lockdown, initially for one week.
  • Worth noting that China's top diplomat and Politburo member Yang Jiechi will meet with U.S. National Security Adviser Jake Sullivan in Rome to discuss Russia's attack on Ukraine.
  • Monthly economic activity indicators, due for release on Tuesday, headline the local data docket this week.
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