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Another Softer Than Expected Yuan Fix, Inflation Data Eyed Tomorrow

CNH

Spot USD/CNH has been rangebound and now changes hands at CNH6.3876, a handful of pips lower on the day. Bears need a slide through Oct 25 low of CNH6.3748 before taking aim at trendline support/Oct 19 trough at CNH6.3688/87. Conversely, a rally past Oct 29 high of CNH6.4104 would prompt bulls to set their sights on Oct 19 high of CNH6.4290.

  • We saw another weak yuan fixing today. The PBOC set their central USD/CNY mid-point at CNY6.3903 today, 10 pips above sell-side estimate.
  • China's monthly inflation data will hit the wires tomorrow. Analysts expect to see acceleration in the growth of prices paid by both consumers and producers, according to a Bloomberg survey.

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