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USD/CNH Modestly Off Friday Highs Thanks To Firmer Yen

CNH

USD/CNH tracks near 7.3615 in early trade today, after closing near 7.3650 on Friday, a CNH loss of ~0.30% for the session. The currency lost ground against the USD through every session last week. USD/CNY finished up at 7.3439 on Friday. The CNY NEER (J.P. Morgan index) slipped 0.21%.

  • CNH is seeing some early modest gains today thanks to a sharp dip in USD/JPY (post hawkish Ueda comments on the weekend). Early moves are modest though for CNH compared to yen's +0.75% gain.
  • USD/CNH highs from Friday were near 7.3690, not far from record highs in 2022 of 7.3749. Lows from Friday were near 7.3350.
  • Over the weekend August CPI inflation data came out close to expectations, with CPI y/y at 0.1%, same as forecast and -0.3% prior). PPI printed at -3.0% y/y (-2.9% forecast and -4.4% prior).
  • Between now the 15th of September, August credit figures are due, with the market looking for a decent rebound in both new loans and aggregate financing as policy support steps up.
  • In the equity space, the Golden Dragon Index fell -0.52% in US trade on Friday. To recap the CSI 300 ended last week down -0.49% on Friday to 3740 in index terms.

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