MNI BRIEF: UK Path To 2.5% GDP Defence Spend Due In Spring

MNI China Daily Summary: Tuesday, February 18

MNI: FRANCE FINAL HICP 1.8% Y/Y, -0.2% M/M

MNI BRIEF: NDRC To Support Private Sector

MNI: PBOC Net Drains CNY484.1 Bln via OMO Tuesday

MNI China Press Digest Feb 18: Yuan, Guangdong, Private Sector

MNI: GERMANY ZEW FEB ECONOMIC EXPECTATIONS 26

MNI: UK JAN CLAIMANT CHG +22000

MNI: SWEDEN FINAL JAN CPIF +2.2% Y/Y

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CNH: USD/CNH Near 50-day EMA Support, China Listed Stocks Up In the US

CNH
EM BulletAPACChinaEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Since Monday's near fresh record peak of 7.3734, USD/CNH has largely been tracking south. We saw a brief blip higher above 7.3300 as China responded to the 10% tariff imposition with its own tariffs and other measures. However, China's move wasn't seen as an escalation. USD/CNH tracks at 7.2870 in early Wednesday dealings, after a 0.34% gain for Tuesday's session. In US trade, the Golden Dragon equity index rose 2.65%. 

  • US President Trump didn't seem concerned by China’s retaliation and will speak to President Xi “at the right time”.
  • Intra-session lows on Tuesday came at 7.2746. Current spot levels are close to the 50-day EMA, we are back sub the 20-day EMA, which is near 7.3000. The 100-day EMA remains further south close to 7.2540.
  • Onshore markets return today after the LNY break, with eyes on the USD/CNY fixing. The last fixing was 7.1698 (record on Jan 27 last week). Since then, USD indices have gravitated higher, but only marginally. The risk may be for a relatively benign outcome given recent tariff implementations by both countries and China not wanting to inflame tensions any more with fresh sharp yuan depreciation pressures.
  • Also benefiting the CNH during US trade was softer US data, including the JOLTS print, which helped drag US yields lower.
  • Today on the data front we have the Caixin services PMI for Jan. The market consensus is 52.4, versus 52.2 prior. 
231 words

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.

Since Monday's near fresh record peak of 7.3734, USD/CNH has largely been tracking south. We saw a brief blip higher above 7.3300 as China responded to the 10% tariff imposition with its own tariffs and other measures. However, China's move wasn't seen as an escalation. USD/CNH tracks at 7.2870 in early Wednesday dealings, after a 0.34% gain for Tuesday's session. In US trade, the Golden Dragon equity index rose 2.65%. 

  • US President Trump didn't seem concerned by China’s retaliation and will speak to President Xi “at the right time”.
  • Intra-session lows on Tuesday came at 7.2746. Current spot levels are close to the 50-day EMA, we are back sub the 20-day EMA, which is near 7.3000. The 100-day EMA remains further south close to 7.2540.
  • Onshore markets return today after the LNY break, with eyes on the USD/CNY fixing. The last fixing was 7.1698 (record on Jan 27 last week). Since then, USD indices have gravitated higher, but only marginally. The risk may be for a relatively benign outcome given recent tariff implementations by both countries and China not wanting to inflame tensions any more with fresh sharp yuan depreciation pressures.
  • Also benefiting the CNH during US trade was softer US data, including the JOLTS print, which helped drag US yields lower.
  • Today on the data front we have the Caixin services PMI for Jan. The market consensus is 52.4, versus 52.2 prior.