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USD/CNH Hits Fresh Highs, Before Retracing

CNH

USD/CNH has hit fresh highs, trading above 7.0820. We spiked above 7.0800 post the in line CNY fix. However, the onshore spot open was muted initially, USD/CNY drifting down 7.0620, but dips have been supported. The pair last near 7.0700, also fresh highs. USD/CNH has settled somewhat, last near 7.0780/90.

  • USD strength against both CNH and CNY was short lived yesterday after we made fresh highs early in the Asia Pac session.
  • Broader USD sentiment remains positive though today, with all the majors down against the USD.
  • In the equity space we are off to soft start for HSI, down over 1.2%, while onshore shares continue to track lower.

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