May 21, 2024 21:53 GMT
USD/CNH Dips Supported Amid Tight Ranges, Equity Rally Loses Some Steam
CNH
USD/CNH Tuesday ranges were less than 100pips in aggregate. We track close to recent highs in early Wednesday dealings, last near 7.2475. Highs from the start of May around 7.2550 remain intact. Onshore USD/CNY spot finished up at 7.2376, off earlier highs above 7.2400.
- The local data calendar is empty today, although we may get April FDI figures between now and the 24th. Tomorrow delivers Swift global payments in CNY, not typically a market mover, before industrial profits print early next week.
- Yesterday's USD/CNY fix was the highest since late Feb, albeit only marginally above recent levels. The fixing result yesterday saw a brief USD/CNH move higher but there was no follow through.
- Some sell side analysts expect the fixing outcome to remain relatively steady given strong capital outflow pressures.
- In terms of CNH liquidity, deposit rates are comfortably recent highs, the 1 day around 2%.
- In the equity space, some of the recent rebound has lost impetus. The CSI 300 index finished down 0.4% yesterday. In US trade on Tuesday, the Golden Dragon index fell 2.27%.
176 words