OIL: Industry Reports Strong Rise In US Product Inventories

The Friday night range was 7.0630 - 7.0716, Asia is currently trading around 7.0700. The pair found demand on the dip back toward 7.0600 as the market remains wary of the PBOC pushing back on the weak USD. The pair still looks to be under pressure and the PBOC has a job on its hands to turn this around. The Fix will again be closely watched this morning for any further signs of a pushback. On the day watch to see if demand is still toward the 7.0600 area again and if it continues to hold, I suspect sellers will be lining up again on a bounce back towards the 7.0900-7.1200 area if they see it.

• MNI: China's Positive 2026 Policy Tone Aimed At 5% GDP. China’s policymakers will reaffirm an expansionary fiscal and monetary policy stance at an upcoming annual key meeting to underpin a potential 5% economic growth target for 2026, policy advisors told MNI, adding that the deficit-to-GDP ratio is likely to remain around 4% while treasury and local-government bond issuance is set to increase.
• Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 7.1088($1.2b Dec 10) - BBG
• The USD/CNH Average True Range for the last 10 Trading days: 113 Points
• Data/Event : Trade Balance

Fig 1 : USD/CNH Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

• Bank of Korea to Sell KRW800 bn 91-Day Bonds
• South Korea to Sell KRW800 bn 3-Year Bonds
• Bank of Thailand to Sell THB65 bn of 91-Days
• Bank of Thailand to Sell THB45 bn of 365-Days

source: Bloomberg Finance LP / MNI