USD/CNH Can't Sustain Sub 7.2900 Levels
USD/CNH got to lows near 7.2840 not long after the Asia close on Monday, before modestly rebounding. We moved back above 7.3000 in NY trade, before broader USD weakness pulled as back towards 7.2900 by the close. CNH was 0.23% firmer for Monday's session. USD/CNY ended up at 7.2926, sitting comfortably below late September highs above 7.3100.
- The local data calendar is quiet today, although we are still awaiting September aggregate credit/new loans data. The market expects further improvement in both series. This Friday, September CPI and trade figures are out.
- These prints will be watched closely by the market given recent growth forecast upgrades from some sell-side analysts. Still, Golden Week tourism spending and perhaps more importantly, higher frequency housing data, suggests caution around turning too upbeat on the growth outlook.
- In the equity space, the Golden Dragon index lost 0.94% in Monday trade. To recap, onshore equities finished away from earlier lows in Monday trade, but still posted modest losses for the session (CSI 300 off -0.13%).
- A group of US Senators met with China President Xi Jinping in Beijing late yesterday. The Chinese leader emphasized a desire to improve relations between the two countries (see this BBG link). This comes ahead of a possible November meeting between US President Biden and the China President.