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USD/CNH Drifts Under 7.1600 As CNY Fixing Approaches

CNH

USD/CNH holds just under 7.1600 in recent dealings, a touch lower for the session so far. We opened closer to 7.1625. There should be some focus on the USD/CNY fixing, which is coming up in just under 20mins.

  • For the first three sessions this week, the fixing has fallen reasonably sharply in USD/CNY terms. From last Friday where the fixing was at 7.1728, yesterday we got to 7.1254.
  • Working against a lower fix today is a higher onshore spot close yesterday (7.1477, versus 7.1338 on Tuesday), while broader USD sentiment has also stabilized.
  • USD/CNH has tended to fall sharply post each fixing result this week, although we didn't see fresh lows post yesterday's outcome, with the pair finding support near 7.1320, which is close to the 200-day MA.

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