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USD/CNH Underpinned To Start '24

CNH

USD/CNH remains underpinned, with negative sentiment surrounding Chinese equities, mixed PMI releases (disappointment surrounding the official suite of surveys was the focal point there), swelling expectations for deeper monetary easing from the PBoC and focus on December’s PSL injection feeding in on the local China side, alongside broader USD strength to start ’24.

  • Note that the PBoC deployed a slightly firmer lean vs. CNY weakness via its USD/CNY mid-point fixing earlier on Wednesday, which provided brief support. The bias was nowhere near as firm as what was seen during parts of H223.
  • Initial firm resistance is at CNH7.1636, the Dec 22 high, has been breached, with the rate looking through CNH7.1700 at typing.
  • The move has also seen leg above the 200-DMA. A close above there would allow bulls to target mid-Dec daily highs and psychological resistance around CNH7.20.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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