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USD/CNH Back above 7.3200 on Broad Dollar Strength, China Markets Remain Closed

CNH

USD/CNH rallied on Monday in line with broad based USD gains. By late NY the pair was back above 7.3200. A CNH loss of 0.41% for the session, marginally outperforming the BBDXY's 0.66% surge. A reminder that China remain markets remain closed for all of this week for the Golden Week holiday period. USD/CNH last tracked near 7.3220.

  • Hong Kong markets return after a holiday on Monday.
  • Iron ore rallied yesterday, but remains sub recent cyclical highs. House sale data for September in China suggested improvement (+18% m/m), but we are still down in y/y terms (see this BBG link for more details).
  • For USD/CNH recent highs aren't too far away, sitting near 7.3275 from late September. Beyond this region lies earlier September highs close to 7.3700. On the downside the 20-day EMA sits back near 7.3040.

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