Free Trial

Yuan Concedes Some Ground

CNH

Spot USD/CNH caught a mild bid today, broader defensive flows may have played a role here in the absence of alternative headline catalysts. Chinese 10-Year gov't bond yield fell to a two-month low.

  • Today's yuan fixing fell virtually in line with expectations. The PBOC set their central USD/CNY mid-point at CNY6.3936, just 2 pips above sell-side estimate.
  • On the news front, China's tech watchdog reportedly asked Didi to delist from U.S. bourses amid concerns about leakage of sensitive data.
  • As a reminder, China's industrial profits will hit the wires on Saturday. Looking further afield, official & Caixin PMI readings headline the local docket next week.
  • Spot USD/CNH trades +60 pips at CNH6.3937 as we type, with bulls looking to a move through Oct 29 high of CNH6.4104. Bears need a dip through Nov 16 low of CNH6.3616, before taking aim at May 31 low of CNH6.3525.

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.