USD/CNH Edges Away From Recent Highs, HK Markets Closed Today

USD/CNH finished last week near 7.3270, down slightly from recent highs. CNH gained 0.13% for Friday's session, aided by a broad pull back in US yields. We track close to 7.3265 in early dealings today. Highs from last week came in around 7.3470. USD/CNY spot finished Friday's session at 7.3151. The CNY NEER (J.P. Morgan index) eased back to 123.63, down -0.18% on Friday.

• The local data calendar is much quieter this week, with just industrial profits data for September out on Friday.
• Local equities finished last week on a softer note, the CSI 300 lost 0.65%, to close near 3511. The index lost 4.17% for all of last week. Northbound stock connect flows were negative every day last week, although Friday outflows were well down on the large outflows seen on Thursday.
• The Golden Dragon index lost 1.37% in Friday US trade. The degree of relative China equity underperformance is fairly limited though at this stage, with global equity markets also under pressure.
• Also note, key Apple supplier Foxconn is reportedly working with the China authorities over a number of probes into the company (per Bloomberg reports, see this link).
• Hong Kong markets are closed today, which may impact CNH liquidity.