USD/CNH Tracks Recent Ranges

USD/CNH got under 7.2100 late in Asia Pac trade on Wednesday but rebounded from there. By the NY session we got back to 7.2350, before drifting back under 7.2300 by the close. CNH was modestly firmer for Wednesday's session (~0.1%), while USD/CNY finished up near 7.2100. The CNY NEER (J.P. Morgan index) was basically flat at 121.75.

• The data calendar is empty today, but we still wait for the July aggregate credit and new loan figures. The release window is the 10-15th of August. The market expects aggregate financing to pull back to 1100bn yuan from 4224.1bn yuan. New loans are also projected to be much lower (780bn yuan, from 3049.5bn yuan).
• Elsewhere, US President Biden has unveiled new rules on restrictions for US investment into China technology development (see this link for more details). US officials described them as narrowly focused and shouldn't impact the broader economic relationship between the two countries. Still, some US Republicans have stated the rules don't go far enough.
• In the equity space, the Golden Dragon index was close to flat in Wednesday trade. To recap, the CSI 300 finished modestly lower, down 0.31%.
• China yields ticked a touch higher, the 10yr back towards 2.66%, the 2yr towards 2.11%, as the market digested yesterday's inflation data.
• The authorities also made downward revisions to export figures from earlier this year (see this link for more details).