MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

CHINA YTD NEW LOANS CNY17.1 TRLN VS MEDIAN CNY17.5 TRLN: PBOC

MNI China Daily Summary: Friday, December 13

MNI BRIEF: PBOC To Curb Any Yuan Overshot : PBOC Zou

MNI: EUROZONE OCT IP +0% M/M, -1.2% Y/Y

MNI: SPAIN NOV HICP +0% M/M, +2.4% Y/Y

MNI: FRANCE NOV HICP -0.1% M/M, +1.7% Y/Y

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

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Yuan Rebounds, But Spot USD/CNY Finishes Above 7.2000 In Monday Trade

CNH

USD/CNH sits near 7.2525 in early Tuesday trade. The currency gained just over 0.30% on Monday, reversing a little under half of Friday 0.75% sell off. Spot USD/CNY finished up 7.2114, also sub Friday's 7.2292 closing level. Still, dips under 7.2000 were supported in Monday trade. The CNY NEER (J.P. Morgan index) rose to 124.75 (+0.20%).

  • Focus again today is likely to be on the USD/CNY fix. Yesterday's 4:30pm close (a fixing input) for USD/CNY was 7.2084 well below Friday's 7.2283 level, while weaker USD levels more broadly should also aid a lower fixing.
  • Still, Bloomberg notes that traders indicated state owned banks were less aggressive sellers of USDs to defend the local currency yesterday. No doubt this was reflected in the fact that spot USD/CNY climbed back above 7.2000 as the session unfolded. This level had previous served as a strong resistance point.
  • If 7.2000 is no longer a firm line in the sand for onshore spot, dips in USD/CNH may remain supported given the general bias around easier policy settings the authorities have hinted at in recent weeks. For USD/CNH key support to watch lies at the 50-day EMA (CNH7.2056), with initial support at the 20-day EMA (CNH7.2126).
  • Yesterday's lows were at 7.2325, which coincided with recent highs back in Jan/Feb, so this is another potential support point.
  • PBoC Governor Pan stated that there are positive signs in the country's property market (amid other comments) see this BBG link for more details. The local data calendar is empty today.
EM BulletFixed Income BulletsHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets

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.