Outperforms USD Bounce, Nov Homes Down, Caixin PMI Out Today

USD/CNH highs post the Aisa close on Thursday were near 7.1575. We pulled back from these levels but could get back sub 7.1400, the pair tracking near 7.1450 in early Friday trade. This left CNH only modestly weaker versus end Wednesday levels, outperforming the broader USD recovery (BBDXY +0.42%, on a firm US yield bounce).

• USD/CNY spot ended at 7.1350 for the session, while the CNY NEER (J.P. Morgan Index) rose nearly 0.40% to 124.05.
• We get more data today, with the Caixin manufacturing PMI due. The market consensus is for 49.6, versus 49.5 prior. Recall yesterday's official manufacturing PMI slipped to 49.4 from 49.8 prior.
• Stimulus calls persist in light of the data misses, while BBG also noted that Nov property sales remained weak (nearly -30% y/y for the 100 real estate companies, see this link for more details).
• In the equity space, the Golden Dragon index rose a touch in Thursday US trade, the first gain this week. Onshore equities rose 0.23% yesterday for the CSI 300.
• Note, on the flow side, mainland equities saw net inflows of CNY8.5bn via the HK-China Stock Connect links. This represented the largest round of net daily purchases seen across those channels since July.