USD/CNH Wedged Between 50 & 100 Day MAs

USD/CNH spent most of the post Asia close tracking lower on Monday. We got back to the low 6.8700 region, which is where we sit currently (last 6.8730/40). This left CNH little changed for Monday's session, with yesterday's highs coming in just above 6.9000 (note the 100-day MA is near 6.9100). On the downside, the simple 50-day MA comes in at 6.8615. For the CNY NEER, we edged down slightly to 125.10 (J.P. Morgan Index).

• Like elsewhere, CNH benefited from the pullback in the USD/yields through the London/NY sessions.
• The local data calendar is quiet until Thursday when the Caixin services and composite PMIs print.
• Local equities finished the Monday session firmly, the CSI 300 up nearly 1%, shrugging off the weaker Caixin PMI result. Other data from the PBoC's quarterly survey of bankers showed strong loan demand in the economy. This should aid the broader economic recovery, although demand is stronger at the corporate level rather than households.
• The Golden Dragon Index slipped in US trade though, down 0.93%. The index running into some resistance ahead of the 50-day MA in recent sessions.
• Elsewhere, the yuan is reportedly the most traded currency in Russia now, replacing the USD. Sanctions on Russia have played a key role, although China is boosting efforts to settle trade in yuan.