Property Plan & Easing CZS Likely To Aid China Related Assets

USD/CNH is above levels from late last week. The pair last just above 7.1100, in line with broader USD gains, after hawkish Fed comments this morning. We bottomed out near 7.0800 through NY trading on Friday, but still +2.5% firmer (in CNH terms) for the final two sessions of last week. On the downside we have early October lows near 7.01 in focus, while on the topside the 50-day EMA comes in at 7.1354.

• China related asset sentiment could remain buoyed in the early part of this week. Over the weekend more details emerged of the authorities efforts to boost the property market outlook, as part of a 16-point plan (see this link for more details).
• This comes after a 20-point plan was introduced on Friday around easing away from the strict CZS (see this link for more details). Some of the measures such as cutting quarantine time for international arrivals had been well flagged though. These moves come as onshore covid cases continued to push higher on the weekend.
• The other focus point will be today's meeting between President Xi and US President Biden.
• The data calendar is likely to be empty, with the 1yr MLF decision and roll-over expected tomorrow.