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USD/CNH Testing Above 100-day EMA

CNH

USD/CNH is breaking higher, the pair testing above 6.9100, before selling interest emerged (last around 6.9080). This is through 100-day EMA (around 6.9040), which has generally been a cap for the pair since mid March. High from around this time are near 6.9140. Also note the simple 100-day MA sits slightly higher at 6.9184.

  • No obvious catalysts are evident for the move, other than spill over from broader USD gains seen against the majors.
  • Note the CNY fixing was close to neutral, while yesterday we had a slightly firmer bias. This may have aided USD demand at the margins. Onshore USD/CNY spot is through 6.9000, but hasn't breached the 6.9100 level yet.

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