Struggling For Impetus

USD/CNH has been trying to push higher today, but has made little headway so far. The initial uptick was capped at CNH6.7182 and quickly faded, before another uptick allowed the rate to extend gains. It last sits +55 pips at CNH6.7189.

• The PBoC set its central USD/CNY mid-point at CNY6.7332, virtually in line with BBG estimate.
• On the global trade front, Australian media reported that China may slap 40% tariffs on Australian cotton, making them unviable, while a member of Brazilian Pres Bolsonaro's cabinet said that his boss is considering banning Huawei from supplying components to the country's 5G network.
• Elsewhere, Taiwan's Defence Ministry said that a Chinese warfare aircraft entered the island's air defence identification zone late Thursday. It was the 10th foray of Chinese military aircrafts in to Taiwan's ADIZ this month.
• A clearance of Oct 13 high of CNH6.7653 would allow bulls to set their sights on the 50-DMA, intersecting at CNH6.8251. Conversely, a dip through yesterday's low of CNH6.7017 would bring Oct 9 cycle low of CNH6.6787 into play.
• Main points of note on the Chinese docket next week are quarterly GDP & monthly activity indicators (Monday) and the PBoC's LPR fixing (Tuesday).