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CNY Fixing - Still Close To Neutral

CNH

The USD/CNY fixing printed at 6.9572, versus a Bloomberg consensus of 6.9570.

  • Today's fixing outcome remains very close to neutral relative to expectations. The 5-day rolling sum of the error term is -11pips in USD/CNY terms, we were at -25pips on Friday for this metric.
  • No push back on the recent yuan weakness from the fixing standpoint is likely to leave USD/CNH at the whim of other macro drivers (yield spreads with the US and equity market trends, along with sentiment around China's growth pulse this year).
  • Post the fixing USD/CNH has been relatively stable. The pair was last around 6.9750, off session highs above 6.9850. This is in line with the majors, where the USD is slightly down from levels at the end of last week.

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