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JPY Slips, CNH Gains as Evidence Builds of Possible COVID Policy Pivot in Beijing

FOREX
  • JPY comfortably the poorest performer in G10, with the greenback similarly weak. China remains the driver here, with further evidence emerging of a rollback in COVID restrictions and a possible pivot in policy in the near future.
  • Price action has put USD/CNH comfortably below 7.00 to hit 6.9373 - the lowest since mid-Sept - with the likes of iron ore, local equities and AUD also higher to reinforce the risk-on.
  • AUDJPY has bounced well off the Friday low, and now faces 92.242 as near-term resistance ahead of the 200-dma at 92.9118.

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