Free Trial

USD/CNY Hits Fresh 2023 Highs, USD/CNH Holding Close To 7.3200

CNY

USD/CNY has hit fresh YTD highs in the first part of trade today. The pair getting to 7.3197. We sit back slightly lower now, last near 7.3185. In contrast, USD/CNH is hovering around 7.3200, still a little below earlier YTD highs of 7.3497.

  • Whilst the USD/CNY fix was a fresh wide from a fixing error standpoint, it was still well above Tuesday's fixing level (7.1969 today, versus 7.1783 yesterday).
  • This naturally leaves greater USD/CNY upside, given today's upside cap is 7.3408 versus 7.3219 yesterday (+2% above the USD/CNY fixing level).
  • So, this along with broader USD strength elsewhere is likely encouraging the USD/CNY and USD/CNH bids. A weaker HK/onshore equity open is also weighing on yuan sentiment.
  • Still, the risk of further policy action on the FX front can't be underestimated. We have seen a step up in recent months on this front, with the most recent action being the cut in the onshore FX deposit required reserve ratio.

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.