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Losses Briefly Extend As PBOC Cut 1-Year MLF, 7-Day RR

CNH

USD/CNH printed a fresh YTD high after the PBOC cut the 1-Year MLF to 2.50%, a hold at 2.65% had been expected. The announcement came alongside a cut in the 7-day Reverse Repo rate to 1.8% from 1.9%.

  • USD/CNH printed a high at 7.2980 before marginally gains to sit up ~0.2%. Technically the pair sits above it's key EMAs, and is in an uptrend. Bulls target a break of 2023 highs (7.2980), which opens the high from 25 OCt 2022 (7.3749).

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