Free Trial
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.
CNH
CNH lost 0.55% for Tuesday's session. USD/CNH hit a high of 6.9508, right around the simple 200-day MA. We moved lower into the NY close but hold above the 6.9400 level for now. The CNY NEER slipped further to 124.72, -0.28% (J.P. Morgan index), with the index now back close to April lows.
- Focus remains on USD/CNH upside and whether we can break above the 200-day MA, which would open up a move back towards YTD highs from early March near 7.00.
- On-going equity market weakness remains a focus point. We update a chart, below, from earlier in the week on relative China equity performance compared with the rest of the world and USD/CNH (which is inverted on the chart). We are still seeing underperformance even with a return of bank jitters to US indices.
- The last 3 sessions have also seen a cumulative 16.36bn yuan in north bound stock connect outflows. The Golden Dragon index lost a further 3.06% in US trade on Tuesday. A group of 9 US Republican Senators called on US President Biden to impose sanctions against Huawei Cloud due to national security concerns (see this link).
- The local data calendar remains empty today, but the April Politburo meeting is expected sometime this week. Some sell-side analysts expect less focus on stimulus measures and more on structural reform.
Fig 1: China To Global Equity Ratio Versus USD/CNH (Inverted)
Source: MNI - Market News/Bloomberg
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok