USD/CNH Back Close To Friday Session Highs

The early tone to USD/CNH has been to the upside in Monday trade, but we remain well within recent ranges. The pair last tracked close to session highs in the 7.1430/40 region (high of 7.1438). This is +0.20% firmer versus NY closing levels from Friday. We remain sub Friday session highs of ~7.1445. A move above this level may see the market target a move back to 7.1500, at least on a short term basis. Friday's low rest around ~7.1040.

• The market may be disappointed at the margins by the lack of fresh stimulus measures/details from Friday's state council meeting.
• There have also been a few sell-side China growth downgrades in the aftermath of weaker than expected May activity figures in recent sessions, which could also be weighing. Headlines have also crossed this morning from Goldman's around further policy easing forecasts for Q3/Q4 of this year.
• Today US Secretary of State Blinken meets with China's Wang Yi at 9:30am local time. A Blinken meeting with China President Xi Jinping would likely spur further positive China asset sentiment from the perspective of US-China relations, but nothing has been confirmed, at this stage, that a meeting will take place.
• The USD/CNY fixing is also coming up, but the trend has been close to expectations in recent weeks.