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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.
CNH
USD/CNH has pushed higher, we are back above the 7.2500 level, around 0.1% weaker in CNH terms. Current spot levels (7.2515/20) are very close to the 50-day EMA resistance point, see the chart below.
- Onshore USD/CNY spot has firmed nearly 0.20%, back above 7.2400, bringing it back close to the top end of the daily trading band, albeit still off recent highs.
- Broader USD gains are evident, with the BBDXY up nearly 0.20% at this stage. The local equity backdrop is close to flat, while onshore bond yields are down (more so at the front end). This followed a chunky month end OMO injection earlier.
- The PMI prints suggested a mixed picture, with services activity moderating further but remaining above the expansion/contraction point. Manufacturing painted a resilient picture, particularly in terms of the Caixin result (back to Feb highs). Price gauges also rose.
- The data calendar is quiet until next week when onshore markets return (closed from Wed-Fri this week).
Fig 1: USD/CNH Back Near The 50-day EMA
Source: MNI - Market News/Bloomberg
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.
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