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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
Offshore yuan jumped in reaction to a stronger than expected PBOC fixing. The central bank set the USD/CNY mid-point at CNY7.0655, 148 pips below the expected level, after three consecutive days of virtually in-line fixings.
- Spot USD/CNH dipped as low as to CNH7.09 but quickly retraced the bulk of losses and last trades at CNH7.1058, down ~20 pips on the day. Downside focus falls on Nov 14 low/Oct 5 low of CNH7.0196/7.0127. Bulls look for a move towards Nov 9 high of CNH7.2799.
- Meanwhile, China doubled its liquidity injection via the 7-day reverse repo facility versus the previous session, pumping a net CNY123bn into the financial system, after this month's sell-off in Chinese government bonds.
- There is little in the way of notable local data releases during the remainder of the week.
Fig. 1: USD/CNY Fixing Error (USD/CNY Mid-Point Less BBG Estimate)
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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