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USD/CNY Fixing Above 7.1200

CNH

The USD/CNY fixing printed at 7.1230, versus a Bloomberg consensus of 7.1962, although the Reuters expectation was much lower (7.1173).

  • Today's outcome is a -732pip surprise versus the Bloomberg consensus (in USD/CNY terms). This is a slight down step in terms of the fixing surprise from late last week (Thursday -950pips, Friday -891pips).
  • This, coupled with the actual higher fixing above 7.1200, may leave slightly more room for yuan depreciation pressures.
  • Note the upside limit on onshore spot today is 7.2655.
  • USD/CNH is higher post the fixing but is seeing some selling interest beyond 7.2700 Earlier highs came in close to 7.2800.

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