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CNY Fix Ends Stronger Run

CNH

The USD/CNY fix has ended its recent stronger run. Today's USD/CNY fix came out at CNY6.7134, versus market expectations of CNY6.7139.

  • This is a downside surprise in (USD/CNY terms) of only 5 pips. This compares with an average of -37 pips for the previous 5 sessions.
  • This brings the various MAs of the fixing error term away from recent extremes.
  • At face value this might be seen as a red flag to USD/CNH bulls, but given the market has largely ignored previous stronger than expected fixings (in CNY terms) it remains to be seen if today's fix will weigh further on CNH sentiment. At the margin it may encourage a further push higher in USD/CNH.
  • Spot USD/CNH currently sits around CNH6.7650, off the recent highs above CNH6.7700.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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