Beijing Eases Restrictions Further; Caixin Services PMI Out

USD/CNH rebounded post the Asia close on Friday, getting back close to 6.6600, which is where we were at the start of the session. The move higher followed broad USD strength. We opened lower today, but have since move back above 6.6500. China and Hong Kong markets re-open today, with Friday's holidays likely contributing to some of the volatile moves seen in USD/CNH.

• The weekend news around a further easing in Covid restrictions in Beijing will be welcomed. Public transport will resume in most districts, while dine-in at restaurants will also return. Residents are free to move around, as long they have had a negative Covid test in the past 72 hours( raised from the previous 48 hours).
• While overall case numbers are trending down, China health officials noted there were still break-outs in other parts of the country, including the border region with North Korea, which has added a further 13 cases. Cases are also surging back in Hong Kong to levels last seen in April. This could impact equity sentiment to a degree today.
• The Caixin services PMI is on tap today. The market looks for a reading of 46.0 versus 36.2 last month.
• Over the weekend the US Commerce Secretary stated lifting tariffs on consumer related goods may make sense to help alleviate inflation pressures.