February 06, 2023 04:23 GMT
USD/CNH Comfortably Off Highs, Equity Sentiment Weakens
(MNI Australia) USD/CNH is comfortably off earlier session highs. The pair was last around 6.7870/75. This is around -0.25% sub NY closing levels from Friday, but we are seeing some support emerge, as current levels are very close to the 20-day EMA.
- The pair touched 6.8325 in early trade, amid yen weakness and concerns around US-China tensions. Comments from China officials doesn't suggest further escalation around the balloon incident, at least in the near term.
- Equity sentiment is on the backfoot, with the CSI 300 off by 1.67% at the break, while the Shanghai Composite is down by 1.0% at this stage.
- Northbound stock connect outflows continue, with a further 4.4bn yuan in outflows today (note we saw 4.24bn in outflows on Friday's session).