USD/CNH Comfortably Below Early Friday Session Highs

USD/CNH Friday lows came in late during the Asia Pac session, with the pair getting close to the 7.0550 level. We couldn't get back above 7.0800 though on the rebound, spending the rest of the Friday session largely in the 7.0650/7.0750 range. We currently track just under 7.0750. USD/CNY spot ended Friday's session at 7.0640, while the CNY NEER (J.P. Morgan) firmed 0.14% to 123.85.

• For USD/CNH, the 7.1000 level is likely to be watched closely, as the pair got close to this point on Friday before reported state owned bank USD sales emerged onshore.
• The Golden Dragon index rose close to 3% in US trade on Friday, reversing some of the week's losses. The CSI 300 was around flat for Friday's session, still comfortably down for the week, but finding some support ahead of the 3800 level.
• Over the weekend we had April industrial profits, which printed at -20.6% ytd y/y, versus -21.4% prior. Later this week we May official PMI readings.
• US Commerce Secretary Gina Raimondo stated the US won't tolerate China's Micron Chip ban. She sated the US sees it as economic coercion. The comments were made on Saturday after China Commerce Minister Wang Wentao met with both Raimondo and US Trade Representative Tai late last week.