USD/CNH Rebounds Strongly From Intra-day Lows, As Equity Momentum Wanes

(MNI Australia) USD/CNH has seen a sharp rebound from earlier lows. The pair back close to 7.1800 in recent dealings, little change on NY closing levels from Thursday. Earlier lows were near 7.1550. The reversal has coincided with local equities moving off session highs. The CSI 300 got close to 4060 in early dealings but now sits back sub 4030 (still +0.60% firmer).

• HK equities are painting a similar backdrop. The HSI still +0.6% higher, but comfortably off earlier highs.
• Officials from the NDRC, MOF and PBoC are talking at the moment. There doesn't appear any large/ground breaking announcements. The NDRC stating that the economy will see a further improvement in momentum in H2, while it will study/plan for more forceful policies.
• The MOF stated it will step up tax break supports for small businesses, which are still facing difficulties.
• The PBoC has said a range of tools will be used flexibly to maintain amply banking system liquidity. The central bank will guide banks to adjust mortgage rates, while managing liability costs.