CNH: USD/CNH Rises On Broad USD Gains, CNH/JPY Rebounds

USD/CNH tracks near 7.1900 in early Wednesday dealings, with CNH losing close to 0.20% for Tuesday's session, as the USD rebounded across the board. Broader USD index gains were up around 0.50% for the BBDXY and near 0.60% for the DXY. Spot USD/CNY finished up at 7.1950 on Tuesday. The CNY CFETS basket tracker still edged down to 95.80 for Tuesday (per BBG), despite modest yuan outperformance versus USD gains elsewhere.

• For USD/CNH, the 20-day EMA resistance point is around 7.2140, while May 20 highs were at 7.2263. May 9 highs rested near 7.2530, which is also close to the 200-day EMA. Recent YTD lows were at 7.1616.
• Dollar gains were strong against the yen, which lost a little over 1% versus the USD on Tuesday, as Rtrs reported the Japan MoF may shift composition of its current issuance programme away from super-long-end instruments. This drove a sharp fall in long end JGB yields, which also spilled over to US Tsys.
• This helped a global equity rebound, with US markets outperforming (SPX +2.05%) (were aided by higher US consumer confidence data as well). In Tuesday US trade the Golden Dragon index lost 0.28%. The China to global equity ratio is back to April lows, a CNH headwind all else equal. To recap, the CSI 300 lost 0.54% for Tuesday's session.
• CNH/JPY rebounded, from lows just under 19.80, we sit back above 20.05 in early Wednesday dealings.
• The local data calendar is empty until Saturday's official May PMI prints.