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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
USD/CNH found offers above 6.7100 again post the Asia close. From there we dipped to the low 6.6900 region, before rebounding back above 6.7000. This is very much within recent ranges for the pair, but CNH outperformed broader USD strength overnight, see the chart below.
- The data focus today is on the official PMI prints. The market expects the manufacturing PMI to rise to 50.5 from 49.6 last month. The non-manufacturing PMI is also expected to rise to 50.5 from 47.8 previously.
- The other focus point was reported comments from China President Xi, which appeared to recommit to China's dynamic Covid zero strategy.
- The president warned against 'herd immunity' and stated the country would rather affect economic development a little than risk the lives of children and the elderly. Note earlier in the week Premier Li Keqiang stated it was 'arduous' task to stabilize employment and boost the economy.
- Whilst China health officials have cut Covid quarantine times, in the same release they have also standardized approaches to mass testing and lockdowns.
Fig 1: CNH Outperforms USD Bounce
Source: MNI - Market News/Bloomberg
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.
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