USD/CNH Can't Sustain 200-day EMA Downside Break Post US CPI Print

Like elsewhere, USD/CNH was volatile through the US CPI print. From fresh lows near 7.1720 we rebound back above 7.1900, although found selling interest above this level. We track near 7.1880 in early Wednesday dealings, having lost a modest 0.10% for Tuesday's session, in line withe BBDXY gain against a backdrop of rising US yields. USD/CNY ended up at 7.1826 on Tuesday, while the CNY NEER (J.P. Morgan Index) rose 0.19% to 123.965.

• For USD/CNH, intra-Tuesday lows were sub the 200-day EMA (7.1770), but this break didn't obviously hold. The other key EMAs all remain clustered near the 7.2000 level.
• The local data calendar is empty today, although we still wait for Feb new loans/aggregate finance data. on Friday the 1yr MLF is expected to be held steady, while Feb house price data will also be in focus.
• China equities were relatively steady yesterday, despite strong gains in Hong Kong shares (HSI +3%). The HSTECH index is now 20% above recent lows.
• Support for property developers also aided sentiment. Vanke noted after the close that it is in talks with banks on a debt swap that could help prevent a bond default for the company (BBG).
• Also note China Premier Li Qiang is expected to miss a key forum with offshore CEOs later this month (see this link for more details).