USD/CNH Tracking Near 7.3300

USD/CNH mostly tracked higher post the Asia close on Wednesday. We got above 7.3300 late in NY trade and sit just below this level in recent dealings, CNH losing ~0.20% for the session. Yesterday's low was just under 7.3070. USD/CNY ended at 7.3170/75, while the CNY NEER (J.P. Morgan index) edged down slightly to 123.62, but remains well within recent ranges.

• The local data calendar remains empty today, tomorrow delivers September Industrial profits data. Broader USD/CNH trends are being influenced by US yield moves, like the other majors.
• In the equity space, the Golden Dragon index lost 2.16% in US Wednesday trade, amid broader equity losses in major markets. To recap, the CSI 300 index finished 0.50% higher.
• Focus remains on recent fiscal stimulus measures around the rise in government bond issuance. Note Reuters reported that China's State Council restricted the ability of 12 local governments to issue new debt and projects they can launch (see this link).
• This comes ahead of a key meeting between stake holders in the financial sector and the government, where local government debt and the property sector will be discussed.
• Late yesterday troubled property developer Country Garden reportedly defaulted on a dollar bond for the first time (see this link).
• There are also calls for further monetary stimulus so the market can absorb the additional bond issuance projected.