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Free AccessUSD/CNH dipped amid a round of wider.....>
CHINA YUAN: USD/CNH dipped amid a round of wider risk-on flows, taking out
yesterday's worst levels. The rate briefly ticked away from lows, after the PBoC
fixed its central USD/CNY level slightly above expectations, but has eased off
thereafter. The PBoC also injected CNY10bn via its 7-day reverse repos, leaving
the rate applied to the ops unchanged at 2.20%.
- In an interview with Financial News, PBOC Governor Yi pointed to strong
domestic fundamentals, which, he opined, will be unshaken by the coronavirus
crisis. He noted that China needs to continue its LPC reform and pay attention
to risks of some small & medium Chinese banks.
- Jitters surrounding China's latest attempt to increase its control over Hong
Kong remain. Beijing has tried to offer some reassurance, with one of its top HK
off'ls pledging that there will be no interference in the city's judiciary.
- USD/CNH last sits -87 pips at CNH7.1393, pushing towards fresh session lows. A
fall below the 50-DMA/May 20 low at CNH7.1015/0985 would expose May 8 low of
CNH7.0812. Bulls look to take out May 22/Mar 19 highs of CNH7.1646/53, this
year's best levels. A break here would bring Oct 10 high of CNH7.1684 into play.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.