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NYSE Announcement Bolsters Yuan, Chinese State Banks Buy USD

FOREX

The yuan picked up a bid after the NYSE said it ditched plans to delist three Chinese telecom giants and USD/CNH dipped to CNH6.4118, a level not seen since mid-2018. Recovery came quickly thereafter amid chatter that Chinese state banks bought the greenback at CNY6.43. USD/CNH wiped out the bulk of its earlier losses as a result, but remained below neutral levels.

  • Yuan strength added strain to the greenback, which underperformed in G10 FX space amid reduced demand for safe havens & ahead of Georgia runoff elections. JPY and CHF also struggled for any meaningful impetus, with the former limited by Gotobi day flows.
  • The Antipodeans topped the G10 pile, drawing support from the NYSE's announcement. AUD/USD staged a foray above the $0.7700 mark and NZD/USD crossed above the $0.7200 figure.
  • TWD surged in sync with CNY, with USD/TWD dropping below the TWD28.00 level for the first time since 1997.
  • KRW underperformed in the Asia EM basket after USD/KRW failed to make substantial headway beyond its cycle low yesterday.
  • Coming up today we have U.S. ISM M'fing, German retail sales & unemployment, flash French CPI and comments from Fed's Evans & Williams.

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