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Offshore Yuan Trims Gains On CCTV Hangzhou Report

CNH

Offshore yuan gave away most of its initial gains as Alibaba shares tumbled in Hong Kong on the back of a CCTV report noting that Chinese authorities in the city of Hangzhou have slapped "compulsory curbs" on a citizen surnamed Ma.

  • Spot USD/CNH lost some altitude in early trade before recovering as CCTV headlines did the round. The pair last operates at CNH6.6706, down 36 pips on the day.
  • Reminder that mainland China observes May Day holidays and onshore financial markets will be shut until Thursday, but Hong Kong is already open.
  • Bears need renewed sales past Apr 28 low of CNH6.5863 before targeting Jul 27, 2021 high of CNH6.5287. Bulls look for a clearance of Apr 29 high of CNH6.6939 before targeting Nov 4, 2020 high of CNH6.7745.
  • Looking ahead, the April reading of Caixin Services PMI will be published on Thursday, after the manufacturing gauge showed that contraction in the sector accelerated more than expected.

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