Free Trial
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.
CNH
The move higher in USD/CNH gets plenty of attention, after resistance at the Feb 14 high was breached in Asia hours.
- Highs of CNH7.2789 seen so far.
- Technically, the break higher ends a period of sideways trading and confirms the resumption of the uptrend that started in Dec 2023.
- Our technical analyst believes that there is scope for a climb towards CNH7.3020, the 76.4% retracement of the Sep 8-Dec 29 bear leg.
- The aforementioned Feb 14 high now becomes first support.
- Broader USD strength helps the move in the wake of yesterday’s G10 central bank decisions & U.S. data, but China-specific matters are also noted.
- A USD/CNY mid-point fixing above CNY7.1000 (albeit with a fixing bias towards CNY strength still evident) and lack of USD selling from Chinese state-backed banks at the open of onshore trade promoted yuan weakness in early Beijing dealing.
- State-backed banks were then said to sell USD as USD/CNY moved above CNY7.2200, but that did little to reverse the weakness, with highs of CNY7.2299 registered ahead of NY trade.
- Outflows surrounding Chinese mainland equities (covered in our earlier China stocks bullet) also weigh on the yuan.
- Policymakers have continued to try and play down worry surrounding “FDI fluctuations” and reassure re: the Chinese economic and market outlook.
Fig. 1: USD/CNH
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok