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CNY Fixing - Firmer Bias Maintained, But Less So Compared To Late Last Week

CNH

The USD/CNY fixing printed at 7.1256, versus a Bloomberg consensus of 7.1297.

  • Today's outcome is a -41pip surprise (in USD/CNY terms). This compares with Friday's outcome of -192pips.
  • The negative bias persists, but today's outcome is a down step from late last week. Note the 5-day rolling sum of the fixing error term is -393pips.
  • USD/CNH is higher in the first part of trading today. Last close to 7.1500, +0.30% since the open, with restrictions related to surging Covid cases weighing. The fixing result is unlikely to deter positive USD/CNH momentum in the near term.
  • As expected, the LPR rates were left unchanged.

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