CNH: USD/CNY Fix Edges Up, Fixing Error Little Changed, USD/CNH Above 7.1100
The USD/CNY fix printed at 7.0872, slightly above yesterday's outcome of 7.0856. The fixing error was little changed at -253pips (-258pips yesterday). USD/CNH is a touch higher post the fixing, drifting up towards 7.1110/15, but little changed for the session. Today's fixing outcome is unlikely to shift broader thinking around a still supportive fixing backdrop from a yuan standpoint. Equally, given the fixing is above recent lows it is unlikely to give any fresh impetus to USD/CNH downside. Upside focus is likely to rest around recent highs (7.1170), which is also close to the 20-day EMA.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CNH: USD/CNY Fixing Edges Up, But Error Term Wider, USD/CNH Steady
The USD/CNY fix rose marginally to 7.0973, versus a BBG market consensus of 7.1329. The fixing error widened to -356pips from -247pips on Friday. The fixing remains close to recent lows, so not much has changed from a broader USD/CNY standpoint. USD/CNH is little changed, last near 7.1250/55. US-China trade talks are in focus, with Trump remarks earlier encouraging that a deal could be reached in areas like Soybean purchases. We also have home price data coming up shortly, along with Q3 GDP and Sep activity figures a little later.
CHINA SETS YUAN CENTRAL PARITY AT 7.0973 MON VS 7.0949
- CHINA SETS YUAN CENTRAL PARITY AT 7.0973 MON VS 7.0949
FOREX: Yen Struggles Amid Risk Recovery, AUD/JPY, NZD/JPY Recoup Risk Off Losses
JPY underperformance is continuing, with USD/JPY back testing the 151.00 region (+0.25% firmer for the session). NZD and AUD are tracking up against the USD, with broader risk appetite recovering, with Trump comments around US-China trade (Trump expressed confidence that China would do a deal on US soybean purchases), aiding sentiment. US equity futures are holding higher, while Tsy yields are edging up, but gains are less than 1bps at his stage.
- AUD/USD is at 0.6510, while NZD/USD is back to 0.5740. Upside focus will rest with 0.6550 for AUD/USD, which marks the 50-day EMA, while recent highs in NZD/USD have been near 0.5760.
- AUD/JPY is rallying through 98.30, unwinding all of the recent sell-off. NZDJPY is around 87.70/75, back close to key EMAs (100-day at 86.98).
- Coming up we have China house price data, then Q3 GDP and Sep activity figures. Japan politics will be watched with a potential coalition agreement between LDP and Ishin to be announced today.
