Rises For 6th Straight Session, More Equity Curbs In Focus

USD/CNH was marginally lower for Wednesday's session, the 6th straight run of gains for CNH. We Track near 7.2000 in early Thursday trade, comfortably up from late Asia Pac lows yesterday near 7.1810. The pair likely saw some support amid higher US yields through Wednesday US trade, although gains didn't stretch beyond 7.2020/30. USD/CNY finished up at 7.1912, while the CNY NEER (J.P. Morgan Index) firmed by 0.10% to 124.64.

• Equity sentiment will remain in focus for CNH. Yesterday we saw the CSI 300 rise 1.35%, while the Shanghai Composite gained just under 1%.
• Yesterday saw HK-China Stock Connect inflows, the highest net buying since Jul ’24 at CNY13.6bn, which was supportive for the yuan in Asia hours. Outside of quant trading curbs, reports also crossed of further trading restrictions, with BBG sources flagging a ban of net equity sales around market open and close. In US trade, the Golden Dragon index rebounded 0.97%.
• The local data calendar just has SWIFT CNY payments data today. Tomorrow, we get Jan house prices, which will be in more focus. FDI figures for Jan are also due today/tomorrow.
• For USD/CNH bears, the next bearish target is located at 50-DMA (CNH7.1804), followed by the Jan 31 low (CNH7.1728). Recent highs rest near 7.2340.