Price Action Remains Within Yesterday's Range

PBOC fixed USD/CNY at 6.4565, 12 pips above sell-side estimates. Offshore yuan has strengthened, USD/CNH down 54 pips at 6.4690, but still within yesterday's range after the pair rose sharply yesterday following bubble warnings from regulators.

• Data released showed Caixin services PMI fell to 51.5 from 52.0 in February, this saw the composite print drop to 51.7 from 52.2 previously. Services activity growth eased to ten-month low, total new work increased at a slower pace amid renewed drop in export sales. Confidence regarding the 12-month business outlook remains robust. "Now the major challenge for policymakers will be maintaining the post-coronavirus recovery while paying close attention to inflation," said Caixin in survey results.
• Markets still await results of the NPC, it is expected that policies announced at the meeting will focus on supporting the economy as it recovers, and addressing structural issues in the economy to facilitate long term growth.