USD/CNH Inches Lower, Happy To Hug A Tight Range

USD/CNH has edged lower and last trades -20 pips at CNH6.8452, off the session low located at CNH6.8397. An empty local data docket and a PBoC fix that virtually matched BBG estimate offered no cues for the redback, leaving participants on the lookout for fresh headlines.

• Little no no follow-through from the latest news flow surrounding Sino-U.S. tensions. Thursday's speech from Chinese President Xi included a thinly veiled pushback against rhetoric of U.S. officials separating China from the CCP, as well as any foreign interference.
• In NY hours, Global Times ran an article noting that China may gradually reduce its U.S. Tsy holdings to $800bn from over $1tn.
• Elsewhere, in another signal that the U.S. is not likely to make any U-turn on China, no matter who wins the presidential elex, Democratic candidate Joe Biden spoke against China's attempts to tighten its grip on Tibet and said he would appoint a Special Coordinator for Tibetan Issues, if elected.
• Bearish focus remains on Sep 1 low of CNH6.8134, the worst level in sixteen months, followed by the CNH6.8000 mark. On the topside, a break above Sep 3 high of CNH6.8497 would bring Aug 27 high of CNH6.8937 into play.
• China's trade balance comes out on Monday, inflation data hits the wires on Wednesday.