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USD/CNH Off Best Levels On PBoC Fix, Remains Rangebound

CNH

USD/CNH edges away from best levels after a marginally stronger than expected CNY fixing (the USD/CNY mid-point fixed 21 pips below the BBG median estimate). Although there was a lack of notable deviation in the fix, with a sense of Chinese markets having bigger fish to fry evident e.g. assessing the current COVID situation in Shanghai, eyes on the potential for further carry erosion vs. the USD, while the PBoC continues to try and meet liquidity requirements for Bank’s into month/quarter-end via its standard OMOs. USD/CNH remains comfortably within the recently observed range as a result, last dealing 50 or so pips softer around CNH 6.3815. Yesterday’s high (CNH6.3983) provides the initial point of technical resistance for USD/CNH, while short-term term trend support is seen at CNH 6.3781. PMI data headlines the domestic docket during the remainder of the week.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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