USD/CNH Back To 7.1500, But CNY NEER Falls To Fresh Cyclical Lows

USD/CNH highs were marked close to the 7.1800 level post the Asia Pac close. The pair falling below 7.1500 in NY trade. We were last just above this level. CNH gained 0.21% for Thursday's session (compared with a BBDXY fall of 0.68%), while USD/CNY finished up just below 7.1500. For the CNY NEER (J.P. Morgan Index) we fell a further 0.33% for the 120.01 level. This is a fresh cyclical low in the index going back to April 2021.

• CNH lagging broader USD weakness likely owed in part to the softer trade update yesterday, with export growth coming in below expectations.
• Still, USD/CNH may continue to test lower amid broader USD weakness. The 50-day EMA sits around 7.1320/30, while the 20-day is noticeably higher at 7.2005 (based off Thursday closing levels).
• In the equity space, the Golden Dragon index rose a further 2.55% in US trade on Thursday. The index is up nearly 12% in the past week. These moves followed strong gains for HK and onshore equities yesterday.
• US Secretary of State Blinken and China's top foreign policy official, Wang Yi, in Jakarta late yesterday. See this link for more details.
• The local data calendar is quiet today (with FDI figures for June scheduled for 14-17th), while new home prices print tomorrow. On Monday next week, the 1yr MLF facility rate is out, along with Q2 GDP and June monthly activity figures.