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Chinese Currency Rallies Further After PMI Surge

CNH
  • USD weakness continues to pervade across G10, with USD/CNH moving in tandem as the Chinese currency extends the session's outperformance through the European open. USD/CNH pressuring 6.90 at typing, having taken out support at the 200-dma of 6.9145.
  • Downside moves initially target 6.8781 for direction, marking the 38.2% retracement for the Jan - Feb upleg. Moves follow better-than-expected PMI data overnight from China, with both the manufacturing and non-manufacturing PMI data topping forecast.
  • The non-manufacturing print at 56.3 was the strongest since the recovery from the initial waves of the pandemic in 2020, with 2020's 56.4 print the highest in 8 years.

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