USD/CNH Back To Low 7.2300 Region, June Inflation Figures On Tap Today

USD/CNH got just under 7.2250 in NY dealing on Friday, as the yuan benefited from a broad USD pull back. We sit slightly higher now, last in the 7.2310/20 region. CNH gained 0.32% for Friday's session, while USD/CNY spot finished at 7.2254. The CNY NEER (J.P. Morgan index) fell modestly to 120.89 (-0.19%), as the yuan lagged broader USD weakness.

• US treasury Secretary Yellen wrapped up her 4-day trip to Beijing over the weekend. She stated "no one visit will solve our challenges overnight" but added "I expect this trip will help build a resilient and productive channel of communication with China's new economic team" (see this link for more details).
• Today the focus is on June inflation figures. CPI y/y is projected at 0.2%, versus 0.2% prior, while the PPI is expected to slip to -5.0% y/y from -4.6% y/y. We should also get June credit figures this week.
• The Golden Dragon Index rebounded 3.19% in Friday US trade, bucking the weaker HK and mainland equity trend in Asia Pac trade on Friday. To recap, the CSI 300 lost 0.44%, although in in index terms remains above the 3800 level.
• Elsewhere, ex Finance Minister Lou Jiwei proposed adding 1.5-2t yuan to the fiscal deficit this year to aid smaller company job creation, per onshore media reports (see this link for more details).