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Yuan Stays Firm In Defiance Of Another PBOC Fixing Miss

CNH

The PBOC delivered another softer than expected yuan fixing, setting their central USD/CNY mid-point at CNY6.3929, 25 pips above sell-side estimate. Offshore yuan has shown very limited reaction, albeit it has admittedly ticked away from session highs some time after the fixing.

  • Spot USD/CNH last changes hands -33 pips at CNH6.3874. Bears keep an eye on Nov 16 low of CNH6.3616 and a break here would open up May 31 low of CNH6.3525. Conversely, a rebound above Nov 11 high of CNH6.4077 would shift focus to the 50-DMA at CNH6.4203.
  • Looking ahead, China's industrial profits will be published on Saturday.

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