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Yuan Snaps Three Day Losing Streak

CNH

Offshore yuan strengthened on Thursday, USD/CNH taking its time to drop around 0.2%, the pair last trading up 10 pips at 6.4491. The rise represented the first in three days for the yuan as positive risk sentiment filtered through and global stocks bounced from their sell off. CNH has stayed within a range throughout May, moving between 6.4040 and 6.4930, with the 100-day MA at 6.4875, the pair hasn't closed above this since mid-April.

  • Chinese Premier Li has said higher commodity prices would have to be dealt with, and need to coordinate monetary policy and other measures to facilitate a stable economy, which follows an increase in trading limits for iron ore and an increase fees for steel and coking coal after another jump in PPI in China.
  • There will likely be some focus on Chinese equity markets today after the sell off yesterday took them into technical correction territory. Equity markets in the US rose on Thursday.

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