Free Trial

USD/CNH Moves Below 7.20 Remain Shallow For Now

CNH

USD/CNH moves below CNH7.20 remain relatively shallow after the USD pared losses in pre-NY trade (e-minis hold a little lower with an eye on Nvidia earnings).

  • Lows of CNH7.1811 were printed before the move back to the CNH7.20 zone.
  • Initial support (Feb 7 low CNH7.1888) was breached on the move.
  • The next bearish target is located at 50-DMA (CNH7.1804), followed by the Jan 31 low (CNH7.1728).
  • A breach of the latter would turn the technical tide a little more in the favour of yuan bulls.
  • In terms of yuan-specific drivers, the continued swelling of the property development financing “whitelist,” mainland equity bid and related HK-China Stock Connect inflows (highest net buying since Jul ’24 at CNY13.6bn) were supportive for the yuan in Asia hours.
  • Participants remain eager for more Chinese market-specific & broader policy support.
  • Reports of further trading restrictions showed up after hours, with BBG sources flagging a ban of net equity sales around market open and close.
  • CNH TN funding has loosened a little post-Chinese NY.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.