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USD/CNY Pushing Above 7.2500, Fresh Cycle Highs

CNY

The onshore yuan is probing higher, above 7.2500, which is around fresh cyclical highs for the pair. This is spilling over into USD/CNH, which is back above 7.2600.

  • Earlier the USD/CNY fixing came in above 7.1200, which is fresh highs for this cycle.
  • A weaker tone in China equities is also clearly evident, bucking the better trend seen elsewhere in the region, along with positive US equity futures (albeit way from best levels).
  • We had Q3 GDP figures print, along with September activity/trade figures. It was a mixed bag. Q3 GDP beat estimates, along with September IP growth, but retail sales and property investment were softer than forecast. The trade sector remained resilient.

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