USD/CNH Can't Break Above 7.2000, Key 2024 Economic Meeting Taking Place

USD/CNH stayed on the front foot for most of Monday's session, although a number of attempts to test the 7.2000 level were unsuccessful. In early Tuesday trade we track near 7.1950, having lost 0.10% in CNH terms for Monday's session. USD/CNY finished up near 7.1740, while the NEER (J.P. Morgan Index) rose 0.12% to 123.90.

• For USD/CNH, we are marginally above the 20-day EMA (near 7.1875), while the 50 and 100 day EMAs rest higher at 7.2260/70. The 200-day EMA is around 7.1610/15.
• Fallout from the weekend's weaker than expected inflation data prints has been an FX headwind. At the margin, this has helped push US-CH yield differentials back in the USD's favor, although the US leg remains a bigger driver of such trends.
• This comes as China leaders started a closed-door meeting on Monday to discuss economic targets and map out stimulus plans for 2024, four sources familiar with the matter said (RTRS). The meeting is expected to conclude today.
• We get more data at the end of this week, with Nov activity figures due on Friday, as well as the 1yr MLF decision. Before then we may get Nov aggregate finance figures.
• In the equity space, local equities were much stronger in late Monday trade on potential state buying support (see this link).