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USD/CNH Firms Back Above 7.1800 On Yen Weakness

CNH

USD/CNH and USD/CNY are both above the 7.1800 handle, weaker by 0.35% in yuan terms (highs in USD/CNH at 7.1874). The spike in USD/JPY post dovish BoJ remarks has spilled over to the yuan. Yen is down around 1.7% at this stage, with USD/JPY at fresh highs for the week.

  • Further upside in USD/CNH may bring 7.2032, the July 25 low into play. Tuesday lows in the pair were 7.1337.
  • The USD/CNY fixing also made a fresh high back to Nov last year.
  • Local equities are higher but only by around 0.25%, so still a very low beta compared with other North Asian markets.
  • Note we have July trade figures to print later.

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