USD/CNH Moves Away From Multi-Month Lows, As Greenback Gains Steam

Spot USD/CNH has picked up a bid amid broader demand for USD, as e-minis have been offered, with U.S. Pres Trump noting that he will get security briefing on TikTok-Oracle deal Thursday morning and that "conceptually" he doesn't like the idea of ByteDance holding a majority stake in TikTok. The pair last sits +225 pips at CNH6.7679.

• The PBoC continued to strengthen its fixing of the USD/CNY mid-point, but marginally less than forecast. The rate was fixed at CNY6.7675, above the BBG estimate of CNY6.7661. The daily PBoC fixes are under increasing scrutiny after China's central bank has been showing no appetite to arrest the yuan's sharp appreciation.
• China's bubbling tensions with its international partners remain in focus. Taiwan complained that two military aircrafts from mainland China entered its ADIZ on Wednesday, while the Global Times ran a piece warning Canberra that a bifurcation in Australian policy vs. China (positive economic ties/strained political ties) is unsustainable.
• A jump above the CNH6.8000 figure would open up Sep 9 high of CNH6.8610, a key near-term resistance. But today's move comes after a sharp sell-off, which put USD/CNH on course for its worst quarter on record. Renewed losses past yesterday's low of CNH6.7424 would bring the lower 3.0% Bollinger band at CNH6.7103 into play.
• With little left on China's economic docket this week, focus turns to next week's monthly LPR fixings (Monday) and final BoP current account balance (Friday).