USD/CNH Higher But Remains Below 6.9000

USD/CNH followed the broader USD trajectory higher through Tuesday. The pair got close to recent highs around 6.8955/60, while we currently sit slightly lower, last tracking near 6.8900. The CNY NEER (J.P. Morgan Index) was slightly lower finishing at 126.06 for Tuesday's session. For USD/CNH the 100 day EMA has yet to be breached on the topside (6.9030/40), but support is evident around the 50 and 200-day EMAs (both close to 6.8610).

• The local data calendar remains quiet today. China officials pledged to support growth following a Politburo meeting chaired by President Xi Jinping. The focus remains on domestic demand, as it has done so since late last year.
• This comes ahead of the March National People's Congress meeting, which will set out key economic goals for 2023.
• The other focus point will be on the geopolitical front, with reports Xi Jinping will visit Moscow in the coming months. US Treasury officials also stated companies around the world (including those in China) that are violating sanctions in terms of business activity with Russia will be punished.
• In the equity space, the China Dragon index lost a further 2.90% in Tuesday trade, with the index now back to low Jan levels. The prospect of increased competition in the tech space among China firms weighed on local sentiment in the equity space yesterday.