Free Trial
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.
CNH
(MNI Australia) USD/CNH stuck very much to recent ranges post the Asia close. Selling interest was evident above 6.8900, but the pair didn't see much downside sub 6.8800, which is where we currently sit. For Tuesday's session CNH was unchanged against the USD, despite a 0.25% slide in the BBDXY (the DXY fell by 0.50%). The chart below shows the wedge between USD/CNH and the BBDXY index widening.
- Not surprisingly, the CNY NEER fell and is now at fresh YTD lows according to the J.P. Morgan index, just under 124.80.
- As we noted yesterday, the weaker US data backdrop may not spur CNH gains if it is accompanied by a weaker China export backdrop. Still, we might expect some degree of CNH catch up at some stage if the weaker USD trend persists.
- Onshore and Hong Kong markets are closed today, which is likely to impact CNH liquidity, while there won't be a USD/CNY fix either.
- Taiwan President Tasi Ing-wen plans to meet with US House Speaker McCarthy on Wednesday in Los Angeles, so this is likely to be a focus point in terms of US-China tensions.
- Also note French President Macron begins a 3-day to China today, where he will meet with China President Xi.
Fig 1: USD/CNH and BBDXY Trends
Source: MNI - Market News/Bloomberg
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok