Asia Wrap -a low volume session
There was a reasonable chunk of RMB risk premium baked in for the weekend but with USD/CNH underperforming Asia EM vols unwound much to the relief of the Ringgit which at one point found itself perched precariously above 4.22 level.
USDAsia gapped higher at the open but reversed following a lower USD/CNH move, but overall bearish Yuan sentiment hasn't changed it's just gone into a brief period of hibernation.
The HKD rate curve traded lower from Friday's New York highs but has been supported around the Asia closing levels from last week
China's state council information office will have a briefing on the weekend events at 3 pm Hong Kong on Tuesday.
This morning Caixin PMI beat hasn't exactly inspired a great deal of confidence as expectations are skewed for a deeper contraction in China's economic activities.
China A-shares have been in consolidation mode but skewed bid while KOSPI and TAIEX are taking a small breather after last Friday rally as local traders are on the sidelines ahead of the U.S. holiday.
As to be expected trading volumes have been very light with the U.S. Closed for labour holidays
Overall however it's been a predictably cautious start ahead of what should be jam-packed week chock full of crucial economic releases that will shape monetary policy expectations for the September 18 FOMC meeting.