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Free AccessUSD/CNH bumped higher after a weaker.....>
CHINA YUAN: USD/CNH bumped higher after a weaker than expected daily PBoC fix.
China's central bank set its central USD/CNY mid-point at CNY7.0711 vs. BBG
estimate of CNY7.0656. Simultaneous USD appreciation, driven by renewed risk-off
flows, helped the rate hold onto gains.
- Today's move has taken the rate away from yesterday's lows/100-DMA, located at
CNH7.0544/62. The pair sits +147 at CNH7.0710 as we type, with bulls looking to
take out the round figure/50-DMA at CNH7.1000/31. A break here would expose Jun
4 high of CNH7.1337. Conversely, a retreat under yesterday's low/100-DMA would
shift focus to the 200-DMA at CNH7.0471, followed by Apr 10 low of CNH7.0370.
- BBG sources said that "China's banking regulator told some mid-sized national
banks to cut the balance of their high-yielding structured deposits to
two-thirds of last year's levels by year-end".
- Elsewhere, the U.S. will hold nuclear talks with Russia on Jun 22 and the
White House is determined to draw China into three-way arms control talks.
- As a reminder, China reports CPI & PPI data tomorrow.
To read the full story
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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.