Free Trial

CNH Lags USD Sell-Off, EUR/CNH Back Challenging 200-Day MA

CNH

CNH underperformed the broader USD sell-off through the NY session. USD/CNH sits just under 7.1800 currently, little changed on levels that prevailed this time yesterday, despite the 0.8% drop in the DXY. The pair did get close to 7.2400 overnight post the US CPI print. Recent dips sub 7.1600 have been supported in the pair.

  • EUR/CNH is back around the 200 day MA (7.0196), with spot just under this level at 7.0180 currently. Tests above the 200-day MA have faltered through 2022.
  • The domestic focus today will be on the inflation and trade outcomes, see this link for more details.
  • Inflation will be eyed from the standpoint of any fresh easing risks before year end, while trade figures should provide a fresh update on China's external demand conditions and the domestic demand backdrop (from an import standpoint).
  • Concerns around the domestic demand outlook, amid a rising trend in covid case numbers (notably in Shanghai) is likely weighing at the margin from an FX standpoint. Note also the China Golden Dragon index fell overnight, down by -0.68%, underperforming the tech rebound seen elsewhere.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.