Sticks To Tight Range

Spot USD/CNH has been happy to hold a fairly tight range today. A modicum of early pressure pushed the rate towards yesterday's low of CNH6.5687, but the level was rejected and USD/CNH recovered. It last trades at CNH6.5769, marginally above neutral levels.

• The PBoC fix fell in line with expectations, offering no real impetus.
• China's Premier Li appeared at a joint press briefing with leaders of six international economic institutions on Tuesday. Li noted that China will return to a "proper" range of economic development in 2021 and reiterated the main tenets of the "dual circulation" strategy. Li noted that "we will absolutely not pursue a trade surplus" and "will maintain equal importance for both imports and exports".
• China's Foreign Min Wang is touring major Asian partners and will meet with PM Suga in Tokyo today. He already agreed with his Japanese counterpart to ease restrictions on two-way travel. Next stop is South Korea, with a meeting with Pres Moon scheduled for Thursday.
• China's Taiwan Affairs office briefs the press as we type. Its spokeswoman condemned any cooperation between the U.S. and the self-governed island, while noting that Taiwanese firms are free to go public in mainland China.
• Bulls need a push through yesterday's high/round figure of CNH6.5971/6.6000 before attempting a move at Nov 12 high of CNH6.6349. Bears look for a fall through Nov 18 low of CNH6.5321, which would bring trendline support at CNH6.6278 into play.
• Data-wise, focus moves to China's industrial profits, due Friday.