All eyes on the CNY fix -Having....>

EMERGING MARKETS: All eyes on the CNY fix

-Having unsettled markets globally Monday, the PBoC managed the CNY slightly

higher Tuesday, which had a moderate soothing effect on EMFX and risk assets

more broadly. As such, the Wednesday fix will be carefully watched to see to

what extent the PBoC are looking to inject some two-way risk into the currency.

Sentiment was bolstered by a Bloomberg report at the NY crossover, citing

sources in saying the PBoC had told foreign firms that the CNY would not "keep

falling".

-Short-covering a modest bounce in US equities helped support high beta FX, with

TRY, TWD and RUB outperforming. ZAR was the laggard by a comfortable distance.

The currency initially rallied throughout US hours before Moody's issued a harsh

critique on beleaguered utility Eskom's turnaround plan, stating the company's

capital structure is "unsustainable".

-Thai and Indian central bank decisions take focus Wednesday. Thailand are

expected unchanged, while the RBI are seen trimming rates by 25bps. Philippine

and Taiwanese trade balance data is also due.