USD/CNH Back Above 7.00, Before Hitting 20-Day EMA Resistance

(MNI Australia) USD/CNH broke back above 7.00 post the Asia close. We got above 7.0150, but now track back under 7.0100. Note the 20-day EMA comes in at 7.0167, which likely helped cap the up move, while the 100-day EMA is also close by at 7.0177. USD/CNH broadly followed the firmer USD tone, while the CNY NEER was basically flat for Thursday's session, although is down close to 0.80% since the start of the week.

• It was reported late yesterday that China could cut quarantine for overseas arrivals to 3 days of monitoring from the current from the current 5-8 days in an isolation facility.
• This didn't boost sentiment much though, as focus remains on the current outbreak. Bloomberg cited analysis which suggests China is likely seeing 1million Covid cases per day, along with 5000 deaths.
• Beijing has also reportedly called in extra health care workers from other districts to help deal with the current outbreak. The market isn’t expecting any meaningful improvement in high frequency growth indicators over the coming weeks.
• Elsewhere, the China Dragon Index lost 1.00% overnight, while the local data calendar is light until industrial profits print on the 27th of December.