CNH: USD/CNY Fixing Edges Up, Error Term Widens, CNH Steady Ahead Of Trump-Xi
The USD/CNY fix printed at 7.0864, versus yesterday's outcome of 7.0843. The fixing error widened to -201pips, from -111pips yesterday. This is usual when we see stronger USD trends (as was the case post FOMC in Wednesday US trade). The CNY fix is just up from cycle lows, with focus now on the Trump-XI meeting, which will get underway soon. USD/CNH is relatively steady, not reacting a great deal to the fix. We were last around 7.0970. Downside focus will rest with a re-test sub 7.0900. Upside moves should be capped in the 7.1200/7.1300 region, (where key EMAs rest).
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA SETS YUAN CENTRAL PARITY AT 7.1055 TUES VS 7.1089
- CHINA SETS YUAN CENTRAL PARITY AT 7.1055 TUES VS 7.1089
CNY: USD/CNY Fixing Edges Lower Again
The USD/CNY fix printed at 7.1055, versus a BBG market consensus of 7.1180.
- This fixing edged lower again(Monday's print was 7.1089). The error term adjusted lower to 125 pips (from -176 pips last).
- Spot USD/CNH tracks near 7.1250 in latest dealings, down from the highs seen towards the 7.1500 area at the end of last week.
FOREX: JPY Crosses - NZD/JPY Leads The Move Lower
US equities stalled just ahead of their all-time highs as the market started to ask why a shutdown was good for equities ? This morning US futures have opened slightly lower on our open, E-minis(S&P) -0.05%, NQZ5 -0.05%. The JPY outperformed across the board in the crosses, NZD remains the standout to be long JPY against.
- EUR/JPY - Overnight range 173.99 - 174.65, Asia is trading around 174.25. The pair topped out around 175.00 and has pulled back as upward momentum stalled. First support back toward the 173.00/173.50 area.
- GBP/JPY - Overnight 199.35 - 200.06, Asia trades around 199.60. This pair has failed again to move above the 200.00 area. Buyers need to reassert the momentum higher again soon or the probability of a deeper pullback increases. In the middle of its recent 198.00-201.00 range, first support is seen back towards the 198.00 area.
- NZD/JPY - Overnight range 85.83 - 86.17, Asia is currently dealing 85.90. This pair worked its way through the bid around 86.20 and yesterday extended lower. While below 88.00/88.50 I continue to have a bias lower. Anyone looking for a vehicle to express a long JPY in the crosses should look to this pair, a move back below 85.00/85.50 could see the move begin to grow momentum.
- CNH/JPY - Overnight range 20.82.31 - 20.8856, Asia is currently trading around 20.8600. The pair is topped out toward the upper boundary of its recent 20.40-21.00 range, a sustained break back above the pivotal 21.00 area is needed to signal the start of the next leg higher targeting the 21.50 area.
Fig 1 : NZD/JPY Weekly Chart
Source: MNI - Market News/Bloomberg Finance L.P
