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USD/CNH Rebounds To 7.1900 But Outperforms Broader Dollar Trends

CNH

USD/CNH spent most of the post Asia close on the front foot, but found selling interest above the 7.1900 level. We track just below this figure level in early trade today. For Friday's session, CNH lost 0.18%, which outperformed USD index gains against the majors (the BBDXY rose 0.37%). USD/CNY closed near 7.1875, while the CNY NEER (J.P. Morgan index) recovered a further 0.26% to 120.54, the second session of gains.

  • Vice Chair of the China Securities Regulatory Commission, Fang Xinghai, reportedly met on Friday with a host of private investors (see this link). This comes amid efforts by China to boost foreign investment into the country.
  • Reports also emerged on Friday that the authorities will ramp support for property construction by boosting urban village development in big cities. This followed a State Council meeting chaired by Premier Li Qiang on Friday (see this link). The authorities did announce more measures to boost automobile purchases and broader consumption earlier in the Friday session.
  • In the equity space, the Golden Dragon index nudged up 0.22% in Friday US trade. This came after slightly negative closes for onshore bourses in mainland trade on Friday.
  • The local data calendar is relatively quiet this week, with just June industrial profits on tap this Thursday.

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