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CNH Weighed By Caixin PMI Miss

CNH

USD/CNH remains on the front foot. The just released Caixin manufacturing, which surprised on the downside (50.0 versus 51.4 expected, prior 51.6), has added to the USD bid. USD/CNH has moved above 6.8900, around 0.3% weaker versus the NY close, but has found some selling interest above this level. Onshore spot is higher, but hasn't breached the 6.8900 level yet. We remain within recent ranges for both pairs though

  • The Caixin PMI will take the gloss off the beats from last Friday's better than expected official PMIs, although as highlighted earlier, onshore sentiment is upbeat around Q2 growth prospects.

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