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CNY Fixing: Still Leaning Against Depreciation Pressures

CNH

The USD/CNY fixing printed at 7.1989, versus a Bloomberg consensus of 7.2073.

  • Today's outcome is a -84pip surprise in USD/CNY terms. This is close to recent outcomes in terms of the fixing surprise (-98pips was yesterday's outcome).
  • There has been some modest re-widening of the fixing error on a 5-day rolling sum basis, but we remain within recent ranges on this metric.
  • USD/CNH hasn't reacted a great deal to the fixing. The pair is back under 7.2300, around -0.25% below NY closing levels. No fresh escalation in social unrest overnight is helping sentiment, while a downtick in Covid cases is also a positive.
  • China related equity sentiment is positive early doors as well.

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