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
USD/CNH continued to find selling interest ahead of the 6.7200 level post the Asia close. The currency outperformed broader USD strength as well, see the chart below, despite negative headline developments. USD/CNH was last at 6.7155.
- The China Golden Dragon index fell sharply in US trade, down just over 4.6%, which bucked the broader resilience in tech equities elsewhere
- China authorities accused the US of 'technological terrorism' following reports that the US is pushing for ASML and Nikon Group to stop selling key chipmaking technology to China.
- On the Covid front, case numbers continue to track higher in Shanghai. Yesterday there was 54 cases, with 2 outside of quarantine. Beijing has also rolled out a vaccine mandate in terms of entry into certain public places. This will kick off from next Monday.
- The data calendar has FX reserves on tap today, with the market expecting a modest move lower to $3111.4bn from $3127.7bn.
- There could also be focus on the USD/CNY fix, given the relentless move higher in the DXY in recent sessions. If USD/CNH breaks above 6.7200, we could see selling interest emerge close to 6.7250, which is a level we have topped out around this past week.
Fig 1: CNH Outperforming DXY Surge
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok