Yuan Treads Water

The PBOC fixed USD/CNY at 6.5029, 3 pips below sell side estimates. Offshore yuan is weaker, USD/CNH last up at 6.5001 having bounced off session lows at 6.4950, but is off session highs of 6.5029. Bears look for a break of yesterday's low at 6.4935, which brings last week's low of 6.4761 into focus. Bulls have several hurdles around 6.51, but for a convincing move higher look for a break of 6.52.

• Markets are still digesting the finer points of yesterday's data dump. Data yesterday showed economic activity jumped in the first two months of the year compared with a year ago, some of this attributed to low base effects, though the figures demonstrated the unevenness of the recovery with strong industrial output led by exports but lagging consumer spending.
• US President Biden affirmed his stance on China when his administration defended Trump's 2018 expansion of tariffs on Chinese goods against lawsuits brought by US companies.
• Elsewhere, there were reports in CCTV that China will improve oversight framework and enhance antitrust supervisory forces in the platform economy sectors. The new changes will focus on preventing monopolies, disorderly expansion of capital and push for fair competition among platform companies.