May 28, 2024 22:15 GMT
USD/CNH Closing In On Late April Highs, Onshore Property Equity Rebound Falters
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USD/CNH was mostly on the front foot post the Asia close on Monday. The pair couldn't beyond 7.2650, and we track near 7.2640 in early Wednesday dealings. This was a modest loss for CNH but still a fresh month to date high for pair. USD/CNY spot finished up at 7.2444.
- For USD/CNH we have narrowed the gap to April 25 highs at 7.2739. The 20-day EMA sits back near 7.2450.
- The afternoon equity pullback for mainland stocks in China, (the CSI 300 finished down 0.73%), weighed on CNH sentiment late in local Tuesday trade.
- The real estate sub index finished down 2.42%, reversing earlier gains. This index has fallen in 6 out of the last 7 trading sessions. This comes despite a number of major China cities easing housing rules in recent days (see this BBG link).
- The firmer US yield backdrop (post the better consumer confidence data and US auctions) kept USD/CNH dips supported during Tuesday's US session.
- The local data calendar remains empty until Friday's official PMI prints.
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