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USD/CNH Dips To ~7.2800, Before Some Support Emerges

CNH

USD/CNH has maintained an offered tone in the first part of trade today. The pair currently tracking near 7.2830, ~0.15% firmer versus closing levels from NY on Friday. We sit slightly above session lows, which were at 7.2798. Lows last week came in just under 7.2700, while the 20-day EMA is a little bit further south, around ~7.2650. On the topside, we couldn't get beyond 7.3020 in the NY session on Friday.

  • Early focus today is likely to rest on equity sentiment post the weekend news of the reduced trading levy and efforts to curb IPO activity to boost market sentiment.
  • Local bonds are seeing an offered tone to the 10yr up ~5bps in early dealings.

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