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USD/CNH Narrows Gap With 50-DMA

FOREX
  • In early Friday trade, the USD Index is holding the bulk of the post-Fed decision weakness, trading either side of the 96.00 handle. This has kept EUR/USD and GBP/USD within the Thursday range, keeping GBP/USD north of 1.33 and EUR/USD below yesterday's highs of 1.1360.
  • CNH stands out slightly, with USD/CNH making headway through the mid-December highs of 6.3893 to narrow the gap with first resistance of 6.3912, the 50-dma.
  • NZD sits at the bottom-end of the table, falling against all others in G10 as EUR/NZD narrows the gap with November/December resistance crossing at 1.6762/1.6775. Softer commodities prices so far Friday are driving growth proxies lower, with WTI and Brent off around 1.5% apiece.
  • There are no notable data releases due Friday, with market focus turning to the first post-Fed decision commentary from the FOMC, with Waller due just after the London close discussing the economic outlook.

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