USD/CNH Moves Back Above 200-day MA, Caixin Services PMI On Tap

(MNI Australia) USD/CNH rose 0.60% through Thursday, unwinding a little over half of Wednesday's fall. The pair finished NY trade a little above 6.9200, down from session highs just above 6.9330. Note we are back above the simple 200-day MA, which comes in around the 6.9160 region. The CNY NEER (J.P. Morgan Index) pulled back 0.30% to 126.12.

• On the data front today, the Feb Caixin services PMI prints. The market looks for 54.5, versus 52.9 prior. The Caixin composite PMI will also print, the last reading was 51.1.
• Geopolitical tensions remain a focus point, with the US sounding out EU nations over possible sanctions on China if lethal aid is provided to Russia. Headlines have crossed this morning that US has not seen evidence of this yet.
• The upcoming NPC, which kicks off this weekend, will also be in focus. A growth target closer to 6% for 2023 would be somewhat of a surprise, as most economists expect somewhere between 5.00-5.50% for this year's growth target.
• Late yesterday, China stated it would put $1.9bn into its top chipmaker, as boosting technology innovation locally is seen as a key policy goal. The China Dragon index rose 2.6% during Thursday trade in the US.