USD/CNH Near 7.2200, Q4 GDP/Dec Activity Figures Out Today

USD/CNH sits near 7.2190 in recent dealings, just below Tuesday session highs (7.2232). The CNH lost 0.47% for Tuesday's session amid broad USD gains (BBDXY +0.83%). USD/CNY finished up at 7.1877, off earlier highs. The CNY NEER (J.P. Morgan index) gained 0.59% to 123.79.

• Like elsewhere, CNH was under pressure as US yields rose, although more so at the back end. Markets reacted to Fed Waller's policy comments: striking a balanced stance re: cutting rates, taking a wait-and-see stance on reaching/maintaining 2% inflation target. There was nothing new, but perhaps not dovish enough.
• Today, the local focus will be on Q4 GDP and Dec activity data. The market expects q/q growth at 1.1% (prior 1.3%), while full year y/y growth is expected at 5.3%. Activity figures are projected to be similar to Nov, although retail sales spending is forecast to ease. Also out is Dec home price figures.
• President Xi Jinping emphasized the need for a strong currency, as part of a broader set of goals for the economy according to Xinhua (see this BBG link for more details).
• In the equity space, the Golden Dragon index lost 3.81%, in US trade on Tuesday. Onshore equities were firmer yesterday, bucking the softer regional trend (CSI 300 up 0.61%).