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Fresh Multi-Week Highs For USD/CNH As Equity Jitters & Property Worry Weigh On Redback

CNH

The aforementioned property sector worry and net selling of mainland equities via the HK-China Stock Connect schemes, coupled with outright weakness in Chinese equities and higher U.S. Tsy yields, biases USD/CNH higher.

  • The rate breaks above CNH7.3300 as a result, printing the highest level seen since Sep 11.
  • The rate has been somewhat contained in recent weeks as familiar sources of Chinese worry face off against an extended run of notable CNY strengthening bias from the PBoC via the daily yuan mid-point fixing and a growing consensus re: the short-term bottoming out of the Chinese economy.
  • USD/CHN bulls continue to eye the double top resistance area that comes in at the ‘23/’22 highs (CNH7.3682/3749).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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