USD/CNH Back Sub 7.2000, CNY NEER Back To Early June Levels

(MNI Australia) From above the 7.2000 level, USD/CNH pulled back post the Asia close on Thursday. The pair got back to 7.1700 by the NY session, aided by softer USD/JPY trends. We finished near 7.1800 in NY, a CNH gain of 0.26%, while USD/CNY closed just under 7.1700 for Thursday's session. The CNY NEER (J.P. Morgan index) climbed further, +0.27% to 122.05. The index is now back to early June levels.

• Current USD/CNH levels are very close to the 20-day EMA, while the 50-day sits back near 7.1530. Support is also likely ahead of the July 27 low close to 7.1160.
• The local data calendar has Q2 BOP current account details out today, which is unlikely to move market sentiment. We do have a briefing at 10am local time (03:00 BST) from the PBoC and the NDRC, where they will discuss driving high quality growth and macro policies (see this link for more details, ICYMI). The market continues to look for more clarity around the policy/stimulus outlook in light of the recent Politburo meeting.
• PBoC head Pan Gongsheng stated late yesterday the authorities will guide more resources into the private sector economy (see this link for more details).
• The positive equity tone from onshore markets, CSI 300 +0.88%, was also evident for the Golden Dragon index in Thursday US trade, the index rallying over 3.5%. This index, along with the CSI 300 remain below recent highs though recorded at the end of July amid policy stimulus optimism.