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USD/CNH Holds Close To 7.3000, CNY NEER Loses Further Ground

CNH

USD/CNH stuck to recent ranges post the Asia close on Wednesday, albeit holding above earlier lows. Highs were seen close to 7.3050, while moves back towards 7.2900 drew some dollar support. We track near 7.3000 in early trade today (CNH lost 0.18% for Wednesday's session). USD/CNY closed at 7.3007 for Wednesday, a touch weaker in yuan terms, while the NEER lost a further 0.18% to 123.43.

  • Focus remains the growth backdrop, following earlier reports this week of potentially fresh fiscal stimulus. A Bank of America survey noted China consumers remain downbeat (see this link for more details).
  • However, China's Vice President, Han Zheng reportedly stated that the country will achieve its growth target this year (see this BBG link for more details).
  • Tomorrow sees important data updates, September CPI and trade figures due. We are also still waiting for the September aggregate credit/new loan figures.
  • In the equity space, the Golden Dragon index rose 0.39% in Wednesday US trade (after Tuesday's +3.14% gain). To recap, onshore equities finished a touch higher yesterday (CSI 300 +0.28%).

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