U.S. Elex Front & Centre, Xi To Speak At CIIE Opening

Spot USD/CNH has taken a dip this morning after grinding lower on Tuesday. The rate last trades at CNH6.6581, ~250 pips worse off. The U.S. election remains front and centre, while locally a keynote speech from Pres Xi at the opening of the China International Import Expo in Shanghai will receive scrutiny.

• The early slide in USD/CNH has been driven by broader risk-on tone, which some have linked to some Florida exit polls which suggested a close race in the state. News wires have started to circulate the first initial results since, with Trump claiming Indiana & Kentucky and Biden winning Vermont & Virginia. The rate has ticked away from session lows.
• Measures of implied volatility remain elevated. Overnight implied vol registered at two-year highs today and sits just shy of there, while the 1-week tenor hovers just shy of best levels on record printed yesterday.
• On Tuesday, Chinese Pres Xi noted that domestic economy may double in size by 2035, which marks the horizon of the country's longer-term economic strategy. The President also said that the nation could reach the status of a high-income country within five years, i.e. by the deadline of its next five-year economic plan.
• A fall past Oct 21 low of CNH6.6278 would open up the 61.8% retracement of the 2018-2020 rally/Jul 10 low/round figure at CNH6.6030/04/00. Meanwhile, a rebound above Oct 28 high of CNH6.7378 would expose the 23.6% recovery of the May 27 - Oct 21 sell-off/50-DMA/Oct 13 high at CNH6.7620/24/53.
• On the data front, Caixin Services & Composite PMIs are due later today. Looking further ahead, flash BoP current account balance is due Friday & trade figures come out Saturday.