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US TSY FUTURES

TYH2 Blocked

OIL

Firmer Since Settlement

CROSS ASSET

Commodity-Tied Dollar Bloc Leads

JGBS

Cheaper On Wider Impetus

AUSSIE BONDS

YM Off Lows, Trouble Staying Offered In Wake Of GDP

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The yuan has resumed gains against the greenback, after a softer than expected PBOC fix helped push USD/CNH higher Wednesday. There was another miss today, with the central USD/CNY mid-point set 14 pips above sell-side estimate, but USD/CNH has been unfazed.

  • As a rule of thumb, misses of more than 20 pips are considered significant. It is also worth noting that today's was the first fixing which fell below CNY6.40 since Jun 16.
  • ZCE coal futures tumbled to their daily limit today, after several government agencies weighed in, after pledging to take action against speculators.
  • Spot USD/CNH trades at CNH6.3843, 103 pips lower on the day, in close proximity to session lows. A dip through Oct 19 low/trendline support at CNH6.3687/6.3670 would shift focus to CNH6.3525, which limited losses on May 31. Conversely, a rebound above Oct 19 high of CNH6.4290 would give bulls some reprieve.