USD/CNH Edges Lower, Strong Singles' Day Sales Weighed Against China's Antitrust Push

USD/CNH has ground lower in Asia, but has trimmed losses and last trades -60 at CNH6.6120. The PBoC fix fell in line with expectations, offering no fresh impetus.

• Hong Kong matters are re-emerging as a bone of contention between China and the U.S. The White House's National Security Advisor O'Brien warned of new sanctions against Beijing after mainland China effectively purged Hong Kong's legislature of pro-democratic lawmakers. Acting on the law adopted by Beijing, HK gov't ousted four legislators, with a further 15 announcing their departure in protest against the move.
• Elsewhere, sales during Alibaba Singles' Day totalled CNY498.2bn, double the amount posted last year. The results of the Singles' Day are watched for hints re: recovery of consumption spending in China.
• Meanwhile, China is continuing its push against monopolistic practices in the tech sector. Late doors yesterday, Vice Chair of the China Banking and Insurance Regulatory Commission said that fintech companies should be subject to the same supervision as banks.
• The rate has stabilised around the CNH6.6 mark over the last few sessions. Bears need a fall through Nov 9 low of CNH6.5475 to reinstate the downtrend and bring the psychological CNH6.5000 support into play. Bulls look for a jump above Nov 9 high of CNH6.6495, towards the 50-DMA/Nov 4 high at CNH6.7323/6.7745.
• Next week will see the release of China's economic activity indicators (Monday) & LPR fixing (Friday).