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PBOC Continues To Signal Discomfort With Yuan Strength

CNH

The PBOC extended their series of weaker than expected yuan fixings, setting their central USD/CNY mid-point at CNY6.3943 today, 17 pips above sell-side estimate. Nonetheless, the redback has proven resilient and garnered some further strength.

  • Offshore yuan trades on a slightly firmer footing, with spot USD/CNH last seen -25 pips at CNH6.3924. A dip through Oct 25 low of CNH6.3748 would shift focus to Oct 19 low/trendline support at CNH6.3687/84. On the flip side, gains past Oct 29 high of CNH6.4104.
  • China's preliminary current account balance data for Q3 will be released tomorrow. Looking further afield, PBOC Gov Yi will speak on Saturday, while trade balance will hit the wires on Sunday.

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