MNI BRIEF: China To Boost Environmental Equipment Industry

MNI BRIEF: China SME Index Highest Since June 2021

MNI China Press Digest March 12: FDI, Cars, Retail Sales

MNI: PBOC Net Drains CNY177.8 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1696 Weds; -0.47% Y/Y

MNI NBP WATCH: Rate Hold; Projections To Give Cut Timing Clue

MNI: JAPAN FEB CORP GOODS PRICE INDEX +4.0% Y/Y; JAN +4.2%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 14.87B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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

CNH: USD/CNH Near 7.2600, Trump-Xi Summit Eyed For Q2

CNH
EM BulletAPACChinaEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

USD/CNH held above 7.2600 for much of the post Asia close period on Monday, getting close to 7.2700 at stage. We track near 7.2600 in early Tuesday dealings, with CNH down 0.25% in Monday trade. Spot USD/CNY finished up at 7.2600. The CNY CFETS basket tracker edged down a little further to 98.95, the 5th straight decline for this index (per BBG). 

  • For USD/CNH technicals, the recent test sub the 200-day EMA (near 7.2390) proved unsustainable. We are back above the 100-day EMA (near 7.2600), while the 50-day remains close to 7.2750.
  • USD/CNH looks too elevated relative to the decline in US yields over recent sessions, with Tsy benchmarks down sharply in Monday trade, led by the front end, as US growth concerns/recession fears weighed on US equities.
  • Still, China equities faltered yesterday in onshore markets and the Golden Dragon index fell 3.60% in US trade on Monday. Lingering deflation concerns from Sunday's data likely played a role in weighing on China related asset sentiment on Monday.
  • The local data calendar has Feb new loans and aggregate finance due at some stage in the next few days. We also get Feb FDI at some stage as well over the next week.
  • Various news wires have reported about a potential Trump-Xi summit, with the WSJ highlighting June as a potential date, while the SCMP said Trump could visit China next month.
  • The US House also passed a bill restricting purchases of China made batteries (see this BBG link). 
246 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.

USD/CNH held above 7.2600 for much of the post Asia close period on Monday, getting close to 7.2700 at stage. We track near 7.2600 in early Tuesday dealings, with CNH down 0.25% in Monday trade. Spot USD/CNY finished up at 7.2600. The CNY CFETS basket tracker edged down a little further to 98.95, the 5th straight decline for this index (per BBG). 

  • For USD/CNH technicals, the recent test sub the 200-day EMA (near 7.2390) proved unsustainable. We are back above the 100-day EMA (near 7.2600), while the 50-day remains close to 7.2750.
  • USD/CNH looks too elevated relative to the decline in US yields over recent sessions, with Tsy benchmarks down sharply in Monday trade, led by the front end, as US growth concerns/recession fears weighed on US equities.
  • Still, China equities faltered yesterday in onshore markets and the Golden Dragon index fell 3.60% in US trade on Monday. Lingering deflation concerns from Sunday's data likely played a role in weighing on China related asset sentiment on Monday.
  • The local data calendar has Feb new loans and aggregate finance due at some stage in the next few days. We also get Feb FDI at some stage as well over the next week.
  • Various news wires have reported about a potential Trump-Xi summit, with the WSJ highlighting June as a potential date, while the SCMP said Trump could visit China next month.
  • The US House also passed a bill restricting purchases of China made batteries (see this BBG link).