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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.
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CNH Watched After Printing Fresh Cycle Low Amid Thin Liquidity
Thursday's sharp sell-off in USD/CNH, driven by an uptick in e-minis coupled with holiday thinned liquidity, drew much attention to the pair, as it tested the water below Sep 16/cycle low of CNH6.7424, a key support level. USD/CNH bottomed out at CNH6.7306, the worst level since May 2019, but then edged away from there and returned above the aforementioned Sep 16 trough.
- Tight liquidity conditions remain, with China still off for holidays. USD/CNH has been rangebound thus far and sits +15 pips at CNH6.7507 at typing. Sustained sales through Sep 16 low of CNH6.7424 & yesterday's low of CNH6.7306 would confirm the resumption of a broader downtrend, turning focus to the CNH6.67-68 area, which limited losses as the rate charted a triple bottom in 1H2019. On the topside, bulls need a move through Sep 24 high of CNH6.8462 to regain poise.
- Markets in mainland China will be shut until Thursday, but an update on foreign reserves comes out on Wednesday, while Caixin Services & Composite PMIs are due Thursday.
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Why MNI
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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.