Political Events Focus For Yuan This Week

PBOC fixed USD/CNY at 6.4754, 9 pips below sell side estimates, another low miss in February. USD/CNH last down 76 pips at 6.4730, the move an extension of a pullback in the USD after some outsized moves last week

• China's official PMI released over the weekend showed manufacturing fell to 50.6 in February, missing estimates of 51, while the non-manufacturing gauge dropped to 51.4 from 52.4.
• Markets now look ahead to Caixin PMI due at 0145GMT/0945HKT.
• Broader focus is on this week's NPC held from March 5, while the the Chinese People's Political Consultative Committee will be held from March 4.
• The government will announce targets for major economic indicators such as GDP, employment, CPI and fiscal deficits, while the NPC are set to approve the latest Five Year plan.
• On the policy agenda CBA says "We expect the Chinese government to skip releasing an annual GDP growth target again because of pandemic‑caused uncertainty. Furthermore, we expect the Chinese government to cut the budget deficit and leave the 2021 local government special bond issuance quota unchanged."