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CNY Fixing - Fixing Error Re-Widens

CNH

The USD/CNY fix printed at 7.1786, versus a Bloomberg consensus of 7.2835.

  • Today's fix represents a -1049pip surprise in USD/CNY terms. This re-widens the error versus yesterday, -880pips, but we remain below recent historical wides (-1243pips on the 11 of September).
  • USD/CNH has drifted a little lower since the fix printed, last near 7.2880. Earlier highs were just above 7.2950. A reminder we have China data activity prints coming in a little while.
  • The 1yr MLF was held steady at 2.50% as expected.
  • The PBoC did inject fresh liquidity via 14 day reverse repos at a rate of 1.95% (versus 2.15% when last conducted in January of this year).

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