© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
US TSYS

Cheapening On Chinese PMIs

AUD

A$ Back To Flat

CHINA RATES

China Repo Rates Rise on Thursday

CHINA PRESS

China Local Bond Sales Peak In June-Journal

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Topics

CNY Fixing Trend More Benign This Week

CNH
EM Bulletmarkets-real-timeFixed IncomeBulletMarketsEmerging MarketsForeign Exchange

The CNY fix printed modestly weaker than expected. The market expected the USD/CNY fix at 6.7400, while the actual outcome came in at 6.7421.

  • Today's fix was only a modest upside surprise in USD/CNY terms of +21pips. This nearly offsets yesterday's downside surprise of -18pips. For the week we have seen a very modest cumulative surprise of +10pips.
  • This week has seen a down step in absolute surprises compared to last week's average of -35pips.
  • This may signal some degree of comfort from the authorities in terms of CNY levels and the pace of depreciation pressures. Clearly weaker USD sentiment has helped though. Note yesterday we also highlighting declining onshore trading volumes compared to April, which may signal less USD buying interest onshore, at least in the near term.
  • USD/CNH hasn't seen a great of reaction to the fix. We opened this morning with a downward bias, getting to just below 6.7350 before USD demand emerged, largely due to equity sentiment softening, while the weaker A$ has also weighed post the softer wages print. We are now back to 6.7550 at the time of writing.
185 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The CNY fix printed modestly weaker than expected. The market expected the USD/CNY fix at 6.7400, while the actual outcome came in at 6.7421.

  • Today's fix was only a modest upside surprise in USD/CNY terms of +21pips. This nearly offsets yesterday's downside surprise of -18pips. For the week we have seen a very modest cumulative surprise of +10pips.
  • This week has seen a down step in absolute surprises compared to last week's average of -35pips.
  • This may signal some degree of comfort from the authorities in terms of CNY levels and the pace of depreciation pressures. Clearly weaker USD sentiment has helped though. Note yesterday we also highlighting declining onshore trading volumes compared to April, which may signal less USD buying interest onshore, at least in the near term.
  • USD/CNH hasn't seen a great of reaction to the fix. We opened this morning with a downward bias, getting to just below 6.7350 before USD demand emerged, largely due to equity sentiment softening, while the weaker A$ has also weighed post the softer wages print. We are now back to 6.7550 at the time of writing.