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USD/CNH Bounces Off A Multi-Month Low


Spot USD/CNH has moved away from session/multi-month lows and returned into yesterday's range. The rate last deals -16 pips at CNH6.9308.

  • The initial round of sales was driven by broader greenback weakness. Hard to pin the recoil on any particular headline, worth mentioning that the DXY has remained subdued.
  • In another reminder about boiling Sino-U.S. tensions, Hong Kong Chief Exec Lam noted that she has troubles using her credit card after being targeted by U.S. sanctions.
  • Meanwhile, China's continues to fight trade skirmishes on several fronts, with the MOFCOM opening an anti-dumping probe into Australian wine.
  • Bears need the rate to extend losses past Mar 9 low/round figure of CNH6.9049/6.9000 to gain some impetus. Bulls would be pleased by a jump above Aug 12 high of CNH6.9549, which would shift focus to the psychological CNH7.0000 level.
  • Looking ahead, China's LPR fixing is due Thursday.

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