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USD/CNH Firms On Equity Weakness, But Holding Below Tuesday Highs

CNH

USD/CNH has tracked higher in recent dealings, last near 7.2970, just below session highs of 7.2983. Earlier lows were at 7.2816. This keeps us within recent ranges, but we have unwound some of the USD weakness seen post Tuesday data misses - highs for USD/CNH prior to these prints were just above 7.3100.

  • CNH weakness has coincided with a loss in positive momentum for local equities, which are back to around flat after being as high as +0.60%for the CSI 300.
  • Local news remains focused on large bank mortgage and deposit rate cuts, while Guangzhou eased housing restrictions. Regulators also issued rules to regulate information/data provided by currency/money brokers' (see this link for more details).
  • Broader USD sentiment has also firmed a touch, with the BBDXY +0.15%, recouping some of Tuesday's losses.

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