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Redback Strengthens As US Dollar Recedes

CNH

The PBOC fixed USD/CNY at 6.5361, 197 pips lower than yesterday's fix as the greenback recedes and the redback advances alongside Asia FX.

  • The PBOC injected a net CNY 30bn of liquidity today across 7- and 14-day repos, the fourth straight day of injections and a total of CNY 340bn this week.
  • USD/CNH is 125 pips lower on the day, last at 6.5213. The pair is currently challenging yesterday's session low, bears will look for a break of Pivot S1 at 6.5150. Beneath this more significant support, and rumoured intervention, awaits at 6.50.
  • For bulls a break of Pivot R1 at 6.5301 is next significant resistance, while there is also chatter of selling around 6.5450, last week's high.


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