USD/CNH Rebounds Back To 7.1600, Q2 GDP/June Activity Figures & MLF Out Today

USD/CNH finished NY trade on Friday close to session highs, near 7.1600. We last tracked near 7.1585, with the currency having lost a modest 0.11% on Friday. This followed generally broader USD gains against the majors including JPY. USD/CNH got to lows near 7.1200 earlier in the session. USD/CNY closed at lower levels of 7.1420, but still up from earlier Friday lows. The CNY NEER (J.P. Morgan index) rose 0.12% to 120.16 at the end of last week.

• Over the weekend US Treasury Secretary Yellen stated that US will look for further ways to 'de-escalate' tensions with China, but lowering tariffs was unlikely to be of this de-escalation. John Kerry, the US Climate Envoy, arrived in China yesterday, for a 3-day trip to discuss climate related issues.
• Today we have the 1yr MLF rate outcome, no change is expected (2.65% is the current rate, while projected volumes are 125bn yuan, 237bn prior). Also due is Q2 GDP, +0.8% q/q is the forecast (2.2% prior), while base effects will boost the y/y outcome to a projected 7.1% (4.5% prior).
• June activity figures are out, which are expected to show a loss of a y/y momentum, again though base effects from 2022 will be playing a role.
• In the equity space, the Golden Dragon index lost 2.17% in US trade on Friday, after onshore equities were close to flat during the Friday domestic session.
• Note China's financial regulators have invited some of the world's largest investors to a symposium this Friday, aimed at encouraging investment into the country, per Reuters reports (see this link).