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Positive Equity Sentiment Aids CNH Rebound

CNH

USD/CNH has reversed earlier gains, with the pair now tracking close to 7.1000 (lows at 7.0954). This is below Thursday session lows. Onshore spot is weaker as well, last near 7.0900. Positive equity market impetus appears to be helping CNH sentiment. HK shares have surged in early trade, the main index up nearly 2.70%. The Tech sub index is near +3.30%.

  • Positive earnings results are helping, while positive carry over from the Golden Dragon index surge in US trade is also helping. Goldman Sachs has cut its MSCI China target, but remains overweight. Onshore China shares are higher in the first part of trade as well.

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