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USD/CNH Dip Proved Short Lived, As Equities Unwind Early Bounce

CNH

USD/CNH dipped sub 7.2700 as onshore and Hong Kong equities opened up firmer (low of 7.2691). The CNY fix was also a record relative to expectations, although the initial reaction to this was muted. The USD/CNH dipped has proved to be short lived though, the pair is back around 7.2880, above levels that prevailed prior to the fix.

  • We appear to be tracking equity sentiment reasonably closely at this stage. The USD/CNH rebounded has coincided with the CSI 300 paring earlier gains of as much as 0.80% (now back to around flat). The HSI is also back near flat after being +1% in early trade.

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