PBoC Support & Exporter Demand Seen Aiding CNH Into Year End

USD/CNH sits near 7.1500 in early Friday dealings. CNH gained modestly on Thursday's session, in line with softer USD index performance (BBDXY -0.12%). Dips in USD/CNH sub 7.1400 were supported on Thursday, while recent highs rest near 7.1760. USD/CNY ended the session at 7.1476, while the 4:30pm onshore spot close was lower at 7.1406 (which feeds into today's CNY fixing outcome).

• This, coupled with lower broader USD index levels, may see the USD/CNY fix set lower again. The fixing has fallen in each session this week. The China MNI policy team noted that the yuan could rally further into year end on PBoC support and exporters selling offshore earnings (see this link for more details).
• The local data calendar is empty today, with industrial profits data out for Oct on Monday. There will be more focus on the Nov PMI prints later next week 9due Thursday).
• Onshore equities finished firmer yesterday, the CSI 300 closing up nearly 0.50%. The CSI 300 property sub-index was 3.2% firmer, while the Hang Seng equivalent added 1.8%. BBG sources flagging “unprecedented” property developer support via unsecured loans late yesterday, was a clear positive.
• Elsewhere, BBG noted that China's labor market is weaker than official data suggests (see this link for more details).