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USD/CNH Tracks Tight Ranges, CNH Liquidity Remains Tight

CNH

USD/CNH sits close to opening levels in recent dealings, last around 7.2930. Dips to session lows near 7.2870 were supported, while offers remain above 7.2950 at this stage. Onshore equities opened weaker, but have clawed back losses. Positive momentum is still difficult to come by though. HK shares are faring better, the HSI +1.2% firmer at this stage, and tracking close to session highs.

  • Tighter liquidity remains evident in the CNH space, the 1 month implied yield back to 4.57%. This is below recent highs above 5% but still well above recent norms. The 3 month is around 3.62%, also well above recent averages.

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