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CNY Fixing: At Neutral

CNH

The USD/CNY fixing printed at 7.1566, versus a Bloomberg consensus of 7.1565.

  • Today's fixing is in line with the Bloomberg consensus. Following yesterday's +29pip surprise in USD/CNY terms, the 5-day rolling sum of the fixing error terms sits in positive territory at +15pips.
  • From a trend standpoint there is clearly little push back via the fixing mechanism to CNY weakness. This obviously fits with recent policy rate cuts, with the market expecting a 10bps MLF cut tomorrow.
  • USD/CNH was higher in earlier trade, getting close to 7.1790, but is more offered now, last around 7.1730/40, with lower USD/JPY levels (sub 140.00) helping at the margin.

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