Free Trial

USD/CNH has been offered, punching.......>

CHINA YUAN
CHINA YUAN: USD/CNH has been offered, punching through yesterday's lows. The
PBoC fix roughly matched expectations, but above-forecast official PMI figures,
released out of China, applied some pressure to the pair.
- The yuan has managed to register gains despite tensions surrounding Hong Kong
Security Bill, approved by China's legislature in a unanimous vote today. The
Global Times reported that the legislation will take effect on Jul 1, with other
source reports suggesting that the law will be revealed to the public via Xinhua
news agency this afternoon. China's moves vs. HK have further escalated tensions
with the U.S., which stripped the city off some special trading privileges.
- USD/CNH sits -112 pips at CNH7.0652 at typing. The initial bearish target is
provided by Jun 24 low/200-DMA at CNH7.0455/47 and a break here would shift
focus to Jun 10 low of CNH7.0401, a key near-term support. Bulls look for a
rebound above Jun 26 high of CNH7.0898, which would give them a green light for
targeting Jun 15 high/50-DMA at CNH7.0974/7.1012.
- China's Caixin M'fing PMI is due for publication tomorrow, with Caixin
Services & Composite PMIs coming up on Friday.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.