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Muted Start, Marginally Softer On Tuesday

CNH

USD/CNH prints at 6.92/93 the pair is little changed from yesterday's closing levels in a muted start to Wednesday's trade.

  • On Tuesday an uptick in US Yields saw the pair firm ~0.1%, however ranges were narrow for the most part with support at 6.92 and resistance above 6.93.
  • Technically we sit above the 20-Day and 200-Day EMAs, bulls target high from May 2 (6.9646) from here they look to break the 7 handle. Bears first target the 20-Day EMA (6.9156) to turn the tide.
  • In the equity space CSI300 fell ~0.9% yesterday, the overnight lead is weak as the Golden Dragon Index slid 2.2%.
  • Data-wise we have a light calendar today, tomorrow April CPI & PPI prints are coming into view.

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