MNI BRIEF: Carney Sees Small Deficits To Fund Infrastructure

FED MINUTES: WANT FURTHER DISINFLATION BEFORE NEXT CUT

MNI China Daily Summary: Wednesday, February 19

MNI BRIEF: China Jan Utilised FDI Lower Than Last Year

MNI BRIEF: China Unveils Plan To Attract Foreign Investors

MNI BRIEF: China To Ensure Credit Supply For Private Companies

MNI: US REDBOOK: FEB STORE SALES +5.8% V YR AGO MO

MNI: US JAN HOUSING STARTS 1.366M; PERMITS 1.483M

EZ/UK Bond Supply Calendar: IT Piu; SP, FR Due Thursday

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 Tracks Recent Ranges, Onshore Spot Can't Sustain +7.2900 Levels

CNH
EM BulletAPACChinaEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

USD/CNH got close to 7.3000 late in Asia Pac trade before steadily drifting lower throughout the remainder of Thursday trade. We didn't breach 7.2800 back on the downside though and track just under 7.2870 in early Friday dealings. USD/CNH followed USD/CNY spot trends largely. This pair saw a brief move above 7.2900 but we finished up at 7.2852. The CNY CFETS basket tracker, per BBG, fell 0.25% to 100.72. 

  • BBG noted that state banks provided USD liquidity yesterday, although there wasn't a firm line in the sand. It also noted it was borrowing USDs in the 1yr USD/CNY space. Yesterday's highs in USD/CNY were the highest since the pre-inauguration period from Jan 20. Still, we are some distance from those levels for the pair, highs were seen close to 7.3240 on Jan 20.
  • USD/CNH maintains a positive basis with USD/CNY and may continue to take a lead from onshore spot developments.
  • Local equities finished higher onshore yesterday, while the Golden Dragon index rose strongly, up 2.69%, in Thursday US trade. This didn't benefit CNH sentiment though.
  • The local data calendar has FX reserves out later for Jan, which are forecast to ease modestly. More focus will be on Sunday's Jan inflation figures. CPI is expected to rise to 0.4%y/y (from 0.1%), but PPI is forecast to remain in deflation.  
218 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 got close to 7.3000 late in Asia Pac trade before steadily drifting lower throughout the remainder of Thursday trade. We didn't breach 7.2800 back on the downside though and track just under 7.2870 in early Friday dealings. USD/CNH followed USD/CNY spot trends largely. This pair saw a brief move above 7.2900 but we finished up at 7.2852. The CNY CFETS basket tracker, per BBG, fell 0.25% to 100.72. 

  • BBG noted that state banks provided USD liquidity yesterday, although there wasn't a firm line in the sand. It also noted it was borrowing USDs in the 1yr USD/CNY space. Yesterday's highs in USD/CNY were the highest since the pre-inauguration period from Jan 20. Still, we are some distance from those levels for the pair, highs were seen close to 7.3240 on Jan 20.
  • USD/CNH maintains a positive basis with USD/CNY and may continue to take a lead from onshore spot developments.
  • Local equities finished higher onshore yesterday, while the Golden Dragon index rose strongly, up 2.69%, in Thursday US trade. This didn't benefit CNH sentiment though.
  • The local data calendar has FX reserves out later for Jan, which are forecast to ease modestly. More focus will be on Sunday's Jan inflation figures. CPI is expected to rise to 0.4%y/y (from 0.1%), but PPI is forecast to remain in deflation.