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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.
CNH
Spot USD/CNH has shown a muted reaction to a miss in Chinese CPI coupled with a beat in PPI. Factory-gate inflation accelerated to +9.0% Y/Y in May from +6.8% prior, beating exp. of +8.5% and reaching the fastest pace since 2008, as the impact of the global commodity boom have shown in the data. Consumer prices rose 1.3% Y/Y in May after a 0.9% increase in Apr, undershooting forecast of a 1.6% rise. USD/CNH last trades at CNH6.3956, ~40 pips lower on the day but still comfortably within yesterday's range.
- The PBOC set its central USD/CNY mid-point at CNY6.3956, in line with BBG sell-side estimate and thus failing to elicit any yuan volatility.
- Looking ahead, China's money supply & financing data may hit the wires at any point from today.
- A clean break below Jun 7 low of CNH6.3849 would shift downside focus to May 31 cycle low of CNH6.3525. Conversely, a break above Jun 4 high of CNH6.4104 would clear the way to CNH6.4410-36, which capped gains on May 18-24.
Fig. 1: China CPI Y/Y vs. China PPI Y/Y (%)
Source: MNI - Market News/Bloomberg
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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