FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD/CNH Volatile Through Wednesday Trade, CNY Basket Now Off 1.6% In August

CNH

USD/CNH was volatile through Wednesday trade. The pair got close to 7.1400 as the market awaited US payroll revision figures. The downward revisions, coupled with a dovish set of FOMC of Minutes, pushed the pair sub 7.1200. However, we rebounded into the US close and track above 7.1300 in early Thursday dealings. Spot USD/CNY also finished up just above the 7.1300 handle.

  • In the wash up we saw US front end Tsy yields finish lower in Wednesday trade, which keeps US-CH yields differentials biased lower. USD/CNH moves are still tracking such spreads closely.
  • For the pair, the downside focus will remain on a test sub 7.1000 and a revisit to earlier August lows. Upside resistance is likely above 7.1500. Also note the 20-day EMA is near 7.1800.
  • Some offset comes from the neutral fixing bias, with the USD/CNY fixing error no longer guarding against depreciation pressures. BNP Paribas also noted that the 7.1000 could be eyed as this marked lows in the pair during Q4 2023 when exporters were hedging (Per BBG).
  • Caution from the authorities around the pace of yuan appreciation could see the currency remain an underperformer amidst a weak USD backdrop. The Bloomberg CNY CFETS tracker continues to track lower, last at 97.65. The index has now lost 1.6% since the start of August.
  • On the data calendar today we just have July SWIFT global payments in CNY.
EM BulletFixed Income BulletsHomepagemarkets-real-timeBulletMarketsEmerging Market NewsForeign Exchange Bullets

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.