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Yuan Rangebound Despite Marginally Stronger PBOC Fix

CNH

The PBOC set their USD/CNY reference rate at CNY6.3313, 17 pips below sell-side estimate but offshore yuan has been unfazed. Spot USD/CNH crept higher after the fixing, only to give away its modest gains later on.

  • The rate sits at CNH6.3237, virtually unchanged on the day. Bulls would be pleased by a rally above Feb 22 high of CNH6.3445 which would shift focus to Feb 8 high of CNH6.3763. Conversely, the initial layer of support has been defined at Feb 18 low of CNH6.3182.

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