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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CNH
Spot USD/CNH has been moving within the confines of yesterday's range thus far, posing no real threat to a fresh cycle low of CNH6.3249 printed at the start to the week.
- The PBOC set the yuan reference rate at CNY6.3418, just 8 pips above average estimate, even as the official index of yuan strength against a basket of currencies hit the highest level since 2015.
- USD/CNH changes hands +24 pips at CNH6.3361. Bulls look to a breach of CNH6.3625/26, which limited gains on Jan 18/19, before targeting Jan 6/Nov 26 highs of CNH6.3976/99. Bears need a dip through yesterday's cycle low of CNH6.3249 before taking aim at May 11, 2018 low of CNH6.3198.
- Participants look ahead to the release of industrial profits (Thursday) as well as official PMIs & Caixin M'fing PMI (Sunday), before China begins the Lunar New Year holiday.
Fig. 1: PBOC USD/CNY Reference Rate vs. Bloomberg Average Estimate Spread (pips) & Bloomberg CFETS RMB Index Tracker
Source: MNI - Market News/Bloomberg
N.B. the PBOC fix refers to the USD/CNY rate, while the CFETS index tracker gauges CNY strength.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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