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USD/CNH prints fresh session highs of....>

CHINA YUAN: USD/CNH prints fresh session highs of CNH7.0684 in the wake of the
soft Chinese data, with the yuan also pressured by the surging oil prices on the
back of the attack on the major Saudi oil facilities over the weekend, owing to
China's crude oil importing requirements.
- Today's USD/CNY mid-point fixing was a touch firmer than exp. i.e. USD/CNY
fixed lower than exp. and the fix has finally moved off of the CNY7.08 handle.
Both these points go against recent trends, although the fix had little impact
on the yuan itself. Elsewhere, remember that the previously announced broad 50bp
RRR cut goes into effect today, with a focus on MLF operations (as some point to
the potential for lower rates as CNY265bn worth of MLF mature tomorrow) ahead of
Friday's Loan Prime Rate Fixing. Trade war matters of course continue to garner
attention, with junior level ministerial Sino-U.S. talks set to take place this
- Initial resistance at Friday's high of CNH7.0686, with a break above switching
focus back to CNH7.1000. Conversely, Friday's low of CNH7.0312 provides the
initial level of support, with a break below exposing the 50-DMA at CNH7.0227.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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