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Free AccessUSD/CNH Back Above Simple 200-day MA
USD/CNH sits just off Thursday session highs in early Friday dealing. The pair last near 7.1750 (Thursday highs in the 7.1780/85 region), with CNH losing a modest 0.12% for Thursday's session. USD/CNY spot ended at 7.1608, while the NEER (J.P. Morgan Index) eased 0.11% to 123.15.
- For USD/CNH we are back above the simple 200-day MA (near 7.1700). We would expect more resistance on an extension higher towards the 7.2000 region, which marked the mid Dec highs in the pair.
- With local yields skewed lower, amid further easing speculation, this leaves US-CH yield differentials tracking higher, the 10yr spread back to +146bps against recent lows of +121bps. US yield gains were underpinned by firmer labor market data in Thursday US trade, which comes ahead of the NFP print later.
- The local data calendar is quiet today, with FX reserves out on Sunday. Most focus will rest on aggregate finance figures due in the second half of next week and then Friday (12th of Jan) delivers Dec inflation data.
- The CSI 300 index finished up from lows yesterday, but still down nearly 1%. In US trade, the Golden Dragon index lost 0.43%.
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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.