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CNH Outperforming Firmer USD Trend on Caixin Services PMI beat & Weaker Equity Backdrop

CNH

USD/CNH is off session highs, aiding by the Caixin services PMI beat. The pair last tracked just under 6.8800. This leaves us slightly below NY closing levels (-0.10%). Still the overall reaction has been fairly modest in USD/CNH terms with not a great deal of follow through.

  • The currency is outperforming higher beta plays on the more risk averse tone in the equity space. HK equities briefly turned positive post the PMI beat, but now sit back lower (-0.25% for the session).
  • The Caixin services PMI came in at 57.8, versus 55.0 forecast. The Feb read also came in at 55.0. Caixin noted there was a lot of optimism in the services sector in March. The result also mirrored the official PMIs, which showed the services side outperforming relative to manufacturing. The Caixin composite index nudged a little higher to 54.5 from 54.2.

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