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USD/CNH Extending Downtick, Nearing YTD Low

CNH
  • CNH remains firm headed into the NY crossover, with USD/CNH printing fresh daily lows of 6.3396 in recent trade - the lowest level since January 27th. Further weakness exposes 6.3356 initially ahead of the January and multi-year lows of 6.3238 - a key support level.
  • Broad greenback weakness follows an unwind of the risk-off poise posted since the beginning of the week, with the reports of a demobilization of Russian troops responsible for a covering of positions evident across markets today.
  • Moves come ahead of the release of Chinese Inflation data overnight, with markets expecting a moderation in price pressures across both CPI and PPI measures. Y/Y CPI and PPI are expected at 1.0% and 9.5% respectively.

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