USD/CNH Fluctuates As Focus Falls On Chinese PMI Data

Spot USD/CNH hovers around unchanged levels, last sits at CNH6.8169. The rate shed its initial gains and moved into negative territory, in tandem with a slide in the DXY after the release of official PMI data. An above-forecast improvement in official Non-M'fing PMI may have applied some mild pressure to the pair, with both official & Caixin M'fing PMI showing little deviation from estimates and with. All of today's PMI readings pointed to expansion, suggesting that China's economic recovery hasn't lost steam. The rate then ticked away from lows, retaking neutral levels.

• The PBoC fix virtually matched the BBG estimate today, offering little impetus.
• Little of real note re: China in the first U.S. 2020 presidential debate, with Trump & Biden merely scratching the surface on trade matters/origins of Covid-19.
• USD/CNH has stuck to a fairly tight range thus far. A break under Sep 22 low of CNH6.7725 would open up Sep 16 cycle low of CNH6.7424. Conversely, a jump above Sep 24 high of CNH6.8462 would expose Sep 9 high of CNH6.8610.
• China's week-long national holidays start tomorrow and will last through next Thursday.