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CNY Fixing - Weaker Than Expected

CNH

The USD/CNY fix printed at 7.1498, versus a Bloomberg consensus of 7.1469. Note the range on the Bloomberg survey was 7.1296-7.1511, so close to the top end of expectations.

  • Today's fixing outcome represents a +29pip surprise in USD/CNY terms. The result is a little surprising given recent yuan depreciation pressures, but fits the current hands off approach from the authorities to the current trend move higher in USD/CNY.
  • This may be a green light to higher USD/CNH levels, although the market reaction has been limited so far. USD/CNH last sat close to 7.1570, slightly down from session highs.

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