USD/CNH Makes Fresh Multi-Month Lows, Dec Trade Data On Tap

(MNI Australia) USD/CNH currently tracks close to NY session lows, last around 6.7265/70. CNH gained 0.61% for Thursday's session, so slightly trailing some of the stronger G10 performers (most notably the yen). USD/CNH is close to mid-August lows (6.7164), while beyond that is sub the 6.7000 level. The CNY NEER edged down slightly, -0.07% to 126.39 (J.P. Morgan). Dec trade figures are out today.

• The market expects a further slowing in export growth to -11.1% y/y, (range is -8% to -16%), while imports are expected at -10.0% y/y (range is -3.6% to -18.0%), while the trade surplus is forecast at $76.90bn (from $69.25bn prior).
• As has been the case over the past month, the market may look through any weaker than expected outcomes on the data front, given the shift away from CZS.
• Premier Li stated the economy is recovering but big firms still face difficulties. The government will continue to support growth, although overall policy settings will be kept stable (per Bloomberg reports).
• Elsewhere, the China Dragon index edged higher (+0.14%). US President Biden will have discussions with have discussions with Japan and Netherland leaders over coming days around China tech/semiconductor restrictions.