MNI BRIEF: China June CPI Hits Three Month Low

RBNZ MPC SAYS OCR "HAS SIGNIFICANTLY REDUCED CPI"

MNI: RBNZ LEAVES OCR AT 5.5%

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

Headline CPI Ticks Down To 0.2% Y/Y, PPI In Line

CHINA JUNE FOOD PRICES -2.1% Y/Y VS -2.0% Y/Y MAY

CHINA JUNE CPI +0.2% Y/Y VS MEDIAN +0.4%; MAY +0.3% Y/Y: NBS

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD/CNH Rebounds From Lows Sub 7.2400

CNH

USD/CNH sits comfortably earlier lows. We got to 7.2392, but now sit back closer to 7.2600. Lows came not long after the firmer than expected CNY fixing and after the announcement of the FX reserve requirement cut. Onshore equities have also opened higher, although gains have been contained to a degree (earlier at +0.50%). HK markets remain shut due to a typhoon.

  • The Caixin PMI produced only a modest blip lower in USD/CNH (sub 7.2450), before USD demand emerged.
  • On the FX RRR cut, Standard Chartered notes: The key for such measures is not its direct impact - based on size of foreign currency deposits of $822b - a 200bps deduction from the reserve ratio will unleash liquidity of only $16b. “This is a very small amount and won’t be sufficient to narrow interest rate differential between CNY and USD by itself.” Still, it does reinforce the PBoC's desire to stabilize CNY sentiment. “USD/CNH upside is now largely capped at 7.33-7.35, and we should expect a period of stabilization of the pair near term.”
  • For USD/CNH we are sub the 20-day EMA (near 7.2700), while the 50-day sits near 7.2245 on the downside.
EM BulletFixed Income BulletsHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets

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.