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USD/CNH Tests CNH6.8300

CNH

Asia-Pac participants have latched onto the weaker USD theme, with USD/CNH showing as low as CNH6.8302 as a result, extending yesterday’s move below the 50-DMA and turning focus to the March low at CNH6.8105. There hasn’t been much in the way of meaningful, fresh headline flow to drive the move, but we note that northbound net flows via the HK-China Stock Connect schemes are running at the highest level since March 17, which comes after Chinese President Xi called on foreign investors to deepen their presence in Chinese markets as the country improves its business operating environment (on Thursday). On net, thematics and flow are seemingly at the fore here.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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