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USD/CNH Back Above 7.2400, Property Meeting In Focus Today

CNH

USD/CNH currently tracks near 7.2400, slightly down from Thursday session highs in NY. The pair dipped sub 7.2100 post the US CPI release but we rebounded firmly from there. CNH lost 0.19% for Thursday's session. Tuesday highs in the pair, just above 7.2500 remain intact for now. USD/CNY finished up at 7.2189, so comfortably sub currently USD/CNH levels. The CNY NEER (J.P. Morgan index) fell 0.20% back to 121.52.

  • There is no data today, but we still await the July aggregate credit/new lending figures.
  • There will be focus on a reported meeting between China regulators (the China Securities Regulatory Commission) and real estate developers/investors, which is expected to take place today (see this link for more details).
  • In the equity space, the Golden Dragon index rose 0.68% in Thursday US trade, the first gain in 5 sessions. Better than expected sales revenue from Alibaba in Q2 likely aided sentiment. To recap, the CSI 300 edged up 0.21% yesterday, but remains within recent ranges.
  • China government bond yields sit above recent lows, while US-CH 2yr government bond yield spreads are still close to recent highs, supported by the US leg (last around +273bps). This is one factor that is keeping USD/CNH dips supported.

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