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USD/CNH Reverses Off Overnight Highs

CHINA
  • USD/CNH now wholly reversing the overnight strength to now trade at the day's lowest levels - as equity weakness continues to translate into a softer dollar, despite the pervasive run higher in yields.
  • USD/CNH's reversal will run into first support at yesterday's low at 7.2481, but support seen scant until the 200-dma of 7.2316.
  • Worth recalling overnight we saw Reuters reports citing sources that state-owned banks had been selling USD/CNY offshore in order to support the currency - the latest move could re-circulate that speculation.

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