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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.
CNH
USD/CNH hasn't been able to build any meaningful downside momentum. The pair is back near 7.3000, close to opening levels. Earlier lows were just under 7.2950. USD/CNY is holding steady, near 7.3015. This comes despite a generally positive onshore equity opening (CSI 300 +0.80%), while Hong Kong shares are up +1.65%, down slightly from session highs.
- Reports of China's sovereign wealth fund buying local bank stocks has been a source of support (see this BBG link). Still both headline indices are only modestly above recent lows, particularly for mainland shares, see the chart below.
- The other constraint for CNH may be the slightly uptick in US yields. Still, this is not doing much benefit for the USD against the majors. USD/CNH looks broadly consistent with the recent trends in US-CH 2yr government bond yield differentials.
Fig 1: HSI & CSI 300 Off Recent Lows
Source: MNI - Market News/Bloomberg
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.
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