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CNY Fixing Doesn't Impact CNH Sentiment

CNH

The USD/CNY fix printed at 7.1075, versus a Bloomberg consensus of 7.1375. Note the Reuters estimate was much lower at 7.1038.

  • Today's fixing represents a -300 pips surprise relative to the Bloomberg consensus. This is slightly wider relative to yesterday's outcome (-239pips), but still well below late September levels.
  • The actual fixing was a decent step up in yesterday's outcome (7.0992), but we remain below the 28 September high of 7.1107. This level may need to be breached to encourage yuan bears.
  • For USD/CNH the reaction has been muted. We did spike towards 7.1580 post the fix, but we now sit back below 7.1520.
  • Earlier highs close to 7.1630 have not been breached.

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