USD/CNH Holding Above Key EMAs Despite Lower US Yields, NPC In Focus This Week

USD/CNH pulled back from highs above 7.2150 in Friday post Asia trade, as US consumer and manufacturing sentiment data came in weaker than expected. The pair didn't see much traction sub 7.2100 though, and we track around this level in early Monday dealings. Spot USD/CNY finished at 7.1967 on Friday, still sub the 7.2000 resistance level. The CNY NEER (J.P. Morgan index) edged down slightly on Friday to 124.48 (-0.12%).

• The CNH saw modest relief from the pull back in US yields post the data outcomes on Friday, although broader USD/CNH ranges remain intact. Just below current spot levels sit some key EMAs, the 50-day day near 7.2020. Further south though is the 200-day, close to 7.1750.
• The local data calendar is empty until tomorrow's Caixin services PMI prints. Later in the week we get Feb trade figures, while on Saturday Feb inflation data is out.
• Focus will also be on the NPC, which kicks off tomorrow, with focus on the growth target, (rough sell-side consensus sits at around 5%), along with fiscal and monetary stimulus measures/goals, which will likely carry more weight than the growth target.
• In the equity space, Friday US trade saw the Golden Index rise 1.04%. This followed positive gains for the CSI 300 (+0.62%) and Shanghai Composite (+0.39%) in Friday trade. Both indices climbed last week, albeit at a reduced pace compared to prior weeks.