November 20, 2023 03:45 GMT
USD/CNH Continues To Track Lower, 200-day EMA and Early August Lows Within Sight
USD/CNH continues to track sharply lower, the pair last under 7.1800, fresh lows back to early August. The August 5 low at 7.1553 is not that far away, while the 200-day EMA comes in slightly higher near 7.1615.
- This continues the correction lower from late last week. The better equity tone to HK markets (+1.55% for the HSI) has helped, while onshore equities are back in the green. Optimism around property funding support is helping, although the CSI 300 real estate index is around flat at this stage.
- Broader USD sentiment is softer across the board today, as the market continues to speculate around the timing of Fed cuts, although nominal US Tsy yields are relatively range bound at this stage.
- USD/CNH is now more in line with the recent weakness in US-CH government bond yield differentials.