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USD/CNH Dips On PBoC Fix, Pares Losses

CHINA YUAN

The PBoC fixing came in at CNY6.8028 and was slightly stronger than the expected CNY6.8050, allowing spot USD/CNH to extend losses. Worth noting it was the first fixing above the CNY6.8 mark since Sep 15. The rate recoiled thereafter and last trades at CNH6.8239, marginally below neutral levels.

  • In U.S./China news, ByteDance filed a suit in a U.S. court to block the looming ban on TikTok, which is set to take effect this weekend.
  • Looking ahead, China will release its final BoP current account balance for Q2 at some point tomorrow.
  • Bears need losses past Sep 16 low of CNH6.7424 to take back control. Bulls take aim at the 23.6% retracement of the YtD range/round figure resistance at CNH6.8496/6.8500 and a break here would open up Sep 9 high of CNH6.8610, a key near-term resistance.

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