Free Trial

USD/CNH Tracking Sub 7.1800

CNH

Headlines crossed early from Reuters that China State Banks were selling dollars offshore (so USD/CNH) to curb depreciation pressures in the early part of the Asia Pac session. This fits with price action in USD/CNH, with the pair dipping sub 7.2200 prior to the CNY fixing outcome and the announcement around easing of macroprudential rules for cross-border flows.

  • USD/CNH then dipped further to fresh lows of 7.1770 on Bloomberg headlines the authorities were considering easing mortgage rules to spur housing demand in big cities (see this link). We currently track around these lows, with moves back above 7.1800 drawing selling interest.
  • Hong Kong equities are holding positive but haven't seen any fresh positive impetus post the Bloomberg headlines. China mainland equities are close at this stage.

To read the full story

Close

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.