USD/CNH Back To 6.9000 Handle, Closing Parts Of NPC In Focus

USD/CNH is lower, in line with the softer USD tone more broadly. USD/CNH is back sub 6.9100 region, around 0.50% firmer in CNH terms versus NY closing levels from last Friday. Broader risk appetite has been supported today as the US authorities announced a number of measures to curb contagion from the SVB collapse.

• For USD/CNH we are back below the simple 200-day MA (6.9245/50), but both the 20 and 100 day EMAs (just above 6.9100) sit near current spot levels.
• Outside of broader USD gyrations, the focus will be on the closing parts of China's NPC. President Xi will deliver a speech, while new Premier Li Qiang will attend a pressure conference.
• In a move that surprised analysts, PBoC Governor Yi Gang has retained his position as head of the central bank. The finance and commerce ministry heads have also been retained. This signals likely policy continuity as China continues to navigate the re-opening and overhauls its regulation of the financial sector.
• Elsewhere, the Biden administration is reportedly considering further tech curbs on exports to China (see this link for more details).
• On the data front, late on Friday aggregate finance figures were a bit better than expected but down from noticeably from the heady January pace. Wednesday delivers Feb activity data, which will be the main focus point this week.