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CNH Holding Recent Ranges, Implied Yields Staying Elevated

CNH

USD/CNH has tracked recent ranges so far in Tuesday trade. The pair got to 7.2926 in early trade and just ahead of the CNY fix. This was around lows from Monday's session. The fixing was again stronger than expected, but the error was narrower than yesterday's record wide. This coupled with some earlier HK equity market weakness took USD/CNH back towards 7.3100.

  • We now sit back closer to 7.3020, as HK equities have recouped earlier losses and mainland share indices are a touch higher.
  • USD/CNH implied yields are holding near recent highs. Last near 4.85% for the 1 wk, 4.48% for the 1 month.
  • Spot USD/CNY has been relatively steady, currently tracking just under 7.2900.

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