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CNY, CNH Hitting New Multi-month Highs

CHINA FX

USDCNH printing new multi-month lows in recent trade at 6.8919 - levels last seen in January. Trade sentiment remains the key driver with markets bolstered (largely equities, but also CNY) by the meeting of Chinese and US representatives, who re-committed to the phase one deal on Monday.

Technically, USD/CNY is extending the pullback from the double top ahead of 7.20, with Credit Suisse also noting that 6.8406/6.8242 marks key Fib retracement levels and could define the lower-end of the range for now.

Ultimate downside target sits at January multi-year low of 6.8457, but may find some support at 6.8714 before there.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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