CNH Following Broader USD Moves

USD/CNH spent most of the post Asia close drifting lower, although dips sub 6.9100 were supported. For today's session we are a touch firmer from a CNH standpoint. USD/CNH is back at 6.9120 currently, versus the NY close of 6.9155. This move is line with softer USD sentiment against the majors. The domestic data calendar remains quiet today, with focus resting on tomorrow's PMI prints.

• CNH followed the broader DXY trend overnight, although EUR/CNH is still higher, back above 6.9200. CNH outperformed the yen though, with CNH/JPY now back above 20.00, although unable to crack above the 50 day MA, which comes in at 20.09 today.
• Focus is likely to rest again on the CNY fixing, although as we noted yesterday, the market is using any USD/CNH dips around the fixing outcome as a buying opportunity.
• The domestic focus also remains on curbing Covid outbreaks, particularly around Beijing, even as nationwide case numbers remain well off earlier highs. The port city of Dalian is the latest to announce restrictions around people movements for the next 5 days.
• The government is also deploying officials to key provinces to boost efforts around the stimulus rollout (see this link for more details).