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USD/CNH Back Sub 7.1700, On Firmer Equities, Lower US yields

CNH

After getting close to 7.1800 earlier today, we now sit sub 7.1700 (just above session lows of 7.1679). USD/CNY onshore spot has opened with a softer tone, tracking back sub 7.1600 at the time of writing.

  • Helping CNH is the better tone to HK and mainland equities in early dealings, while the majors are also generally firmer against the USD, led by NZD and AUD. Softer US yields, 2yr off by near 2bps, is helping.
  • We are still some distance from post US CPI lows for USD/CNH, which came in just under 7.1500.

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