Fresh China's Losses ahead of a Busy Trading Week

China is loosing again

Data released on Monday showed that the Chinese Manufacturing PMI dropped to 49.2 (vs. 49.9 expected), while the Non-Manufacturing PMI fell to 48.7 (vs. the forecast of 50.2). Also, rising Covid-19 cases from numerous outbreaks across China resulted in tightening local curbs and lockdowns and even the closure of Disney’s Shanghai resort. Another factor that weakened Chinese assets was Hong Kong’s GDP slowdown. According to advance estimates, it plunged 4.5% in the July-to-September period from a year earlier.

China’s HK50 dropped below the 15 000 level and moved closer to the support at 14 000. Meanwhile, USDCNH has regained its strength, targeting the recent high at 7.33. The next high at 7.37 will be tested if this level is broken.