USD/CNH Continues To Drift Higher, Q3 GDP/Activity Prints On Tap

USD/CNH was mostly on the front foot post the Asia close on Tuesday. We got close to 7.3300 before selling interest emerged. We got back close to 7.3250 by the NY close, which is where we currently track close to. The currency lost 0.23% for the session. USD/CNY finished at 7.3157, while the NEER (J.P. Morgan Index) was steady at 123.63.

• For USD/CNH earlier October highs, just above 7.3300 remain intact, while beyond that lies the early September highs close to 7.3700. There will be some focus on the CNY fixing today, given yesterday's onshore spot close was within striking distance of the top of the daily trading band.
• On the data front we have Q3 GDP out, along with September activity figures. The market looks for similar outcomes relative to Q2 GDP (in q/q terms) and August activity prints (see this link for more details).
• Elsewhere, focus will be on Country Garden and a potential default on some its dollar bonds due.
• The US administration is also restricting exports of Nvidia chips to China (see this BBG link), as part of widening curbs to restrict access to US technology.
• In the equity space, the Golden Dragon index lost 0.91% in US trade on Tuesday. To recap, onshore equities rose 0.35% in terms yesterday in terms of the CSI 300.