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Offshore Yuan Recovers

CNH

Spot USD/CNH has pulled back from a two-week high printed yesterday. The pair last operates -80 pips at CNH6.3604, with bears setting their sights on Jan 26 multi-year low of CNH6.3238. On the flip side, a rebound above Jan 6/Nov 26 highs of CNH6.3976/99 would confirm that bullish momentum is building.

  • The PBOC set the yuan reference rate at CNY6.3746 today, just 8 pips above sell-side estimate. The rate was unfazed by the fixing.
  • China's official PMIs and Caixin M'fing PMI will hit the wires on Sunday, before the one-week Lunar New Year holiday.

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