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USD/CNH Eats Away At GDP-Inspired Move Lower

CNH

USD/CNH has reversed more than half of the China Q3 GDP-inspired downtick to last trade around CNH7.3170.

  • Continued (modest) outflows from mainland equities via the HK-China Stock Connect schemes will have provided some background pressure, while property-centric worry in China also remains evident, providing another source of pressure for the redback.
  • CNH TN points continue to operate below 0, comfortably shy of levels seen ahead of the Golden Week break, pointing to less of a funding squeeze for CNH shorts.
  • Still, USD/CNH remains relatively rangebound, with the well defined medium-term technical parameters that we have covered on multiple occasions remaining intact.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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