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USD/CNH Drifts Lower, Focus on EU EV Investigation & US-China Relations

CNH

MNI (Australia) USD/CNH drifted modestly lower through the course of Wednesday's session (CNH gain of 0.09%). Dips to around the 7.3100 level didn't see any follow through though. The pair last tracked near 7.3175.

  • In US Wednesday trade, the Golden Dragon equity index lost 0.27%, the 3rd straight session of losses. The EU formally launched an investigation into China EV subsidies (see this BBG link). Stocks remain a focus point in Hong Kong trade today.
  • US Commerce Secretary Raimondo also stated that US needs different tools around export restrictions to combat China tech breakthroughs (see this BBG link).
  • This comes ahead of a planned trip by US Senators to China next week.

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