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USD/CNH Shows Below CNH7.0700 On Latest Hope Re: Chinese Property Stimulus

CNH

The previously covered BBG sources piece, suggesting that “China is working on a new basket of measures to support the property market after existing policies failed to sustain a rebound in the ailing sector,” allows USD/CNH to register a fresh session low at CNH7.0670, before a tick away from session extremes to leave the cross at ~CNH7.0700 at print.

  • As we noted earlier, the rebound in Chinese equities on Friday (see more on that here) already provided CNH with some reprieve after the recent tumultuous run for the yuan.
  • Property stimulus hopes had already factored into the gains for Chinese property developer equities ahead of the weekend (along with the broader bid in stocks), but CNH, DM equities, oil, copper and G10 FX have still reacted to the latest news flow.
  • Current USD/CNH levels would just about allow the cross to end its run of 3 consecutive weekly moves higher (last week’s closing level is CNH7.0739). When it comes to meaningful support levels, our technical analyst doesn’t see much until the 20-day EMA (CNH7.0355).
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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