MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

Indeed Wages Tick Higher, But Future Revisions Are Likely

ITALY MAY INDUSTRIAL PRODUCTION +0.5% M/M ; -3.3% WDA Y/Y

Contrasting Momentum Dynamics Underscore Need For July Data

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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USD/CNH Operates Just Above 27-Month Low

CHINA YUAN

The PBoC seemed to try and rein in yuan appreciation again, but the redback has been unfazed. The currency shrugged off a softer than exp. fixing of the central USD/CNY mid-point and USD/CNH continued to fade its earlier uptick, linked to a broader risk-off reaction to the news that U.S. intelligence officials have detected attempts by Russia & Iran to disrupt the presidential election. USD/CNH last trades at CNH6.6479, just 38 pips above neutral levels.

  • BBG ran an hours-old headline from Global Times editor-in-chief Hu, who suggested that Beijing is ready to retaliate against U.S. measures against Chinese media outlets.
  • Late doors on Wednesday, PBoC Gov Yi reiterated that Chinese economy is expected to grow this year and the leverage ratio is expected to stabilise in 2021, after it increased "due to the fight against the pandemic".
  • Bears need a break below channel floor/yesterday's trough at CNH6.6318/6.6278 to sustain the downside momentum and bring the psychological CNH6.60 figure & the lower 3.0% Bollinger band at CNH6.5747 into play. Meanwhile, a rally above Oct 13 high of CNH6.7653 would be a sigh of relief for bulls.
  • Little of real note left on the Chinese economic docket this week.
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