USD/CNH Up From Friday Session Lows Near 7.1000, Focus On Stimulus Remains

USD/CNH tested lower through Friday's session, post the Asia close, getting sub 7.1050, before rebounding back towards 7.1400. We closed the NY session just under 7.1300, leaving CNH slightly weaker for the Friday session as a whole. The pair currently tracks slightly higher at 7.1305/10. USD/CNY finished the session at 7.1269, while the CNY NEER (J.P. Morgan index) rose a little further to 121.49, +0.08%.

• The main focus continues to be on stimulus measures. China's State Council met on Friday and while it stated that the country needs 'more forceful' measures to support growth, we didn't see any fresh details or a timeline. A basket of pro-growth policies is reportedly being considered and could be released soon.
• One area where infrastructure could be boosted is via tapping special local government bond issuance.
• Elsewhere, US Secretary of State Blinken met with China Foreign Minister Win Gang in Beijing. Blinken's trip continues today but it is unclear, at this stage, if he will meet with President XI Jinping, see this link for more details.
• In the equity space, the Golden Dragon index lost just over 1% in US trade on Friday, after rallying nearly 7% in the previous 3 sessions. The CSI 300 rose nearly 1% in onshore trade on Friday and is back above its simple 200-day MA.
• The local data calendar is empty until tomorrow's 5yr and 1yr LPR decisions.