USD/CNH Ebbs Lower

USD/CNH has lost ground and last trades -36 pips at CNH6.8295. The PBoC fix virtually matched BBG estimate and there has been little in the way of domestic catalysts to drive the move, which suggests that broader USD weakness has weighed on the pair as the DXY has ebbed lower.

• China's new home prices growth accelerated to +0.56% M/M from +0.47% in August.
• China and India seek to de-escalate bilateral tensions, with Beijing reportedly set to release five Indian intelligence workers detained after crossing the border.
• The State Council announced that non-financial firms which do business in at least two financial areas will have to apply for the status of "financial holding companies" or sell their stake in financial firms.
• Elsewhere, Oracle was said to have reached a deal with ByteDance re: TikTok sale after Microsoft's offer was rejected. BBG sources said that the deal will look like a corporate restructuring rather than outright sale, as Beijing was reluctant to allow exporting a key algorithm.
• The rate has stabilised since the beginning of this month. A fall through Sep 1 low of CNH6.8134 is needed for the resumption of a broader downtrend. A break here would open up the lower 2.0% Bollinger band at CNH6.7991. Meanwhile, a jump above Sep 9 high of CNH6.8610 would expose Aug 27 high of CNH6.8937.
• China's monthly economic activity indicators, due tomorrow, headline the local docket this week.