CNH: USD/CNY Fixing Error Again Positive, USD/CNH Edges Up Back Closer To 7.0800
The USD/CNY fixing error was again positive at +18pips (fixing printed at 7.0789, versus 7.0771 proj...
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CNH: USD/CNY Fixing Edges Lower, But Error Term Tighter, USD/CNH Edges Up
The USD/CNY fix was set lower again, but only marginally, while the fixing error tightened further. USD/CNH is slightly up from earlier lows, last around 7.0960 (we touched 7.0910 earlier). Focus will now be on early USD/CNY spot trends. The fixing at 7.0843 is another fresh cycle low, while the consensus was 7.0954, leaving the fixing error tighter at -111pips, versus -175pips yesterday.
CHINA SETS YUAN CENTRAL PARITY AT 7.0843 WEDS VS 7.0856
- CHINA SETS YUAN CENTRAL PARITY AT 7.0843 WEDS VS 7.0856
CNH: USD/CNH Close To 7.0900 Downside Test As USD/CNY Fixing Approaches
USD/CNH is near Tuesday lows, as the USD/CNY fix approaches (last 7.0935/40). A clean break under 7.0900 could see 7.0851 targeted, mid Sep lows, see the chart. Broader USD sentiment, led by JPY and AUD gains, is likely aiding CNH at the margins. Overnight On Tuesday optimism around potential for lower tariff levels to come out of Xi/Trump talks another positive for the yuan.
Fig 1: USD/CNH Near 7.0900 Downside Test
Source: Bloomberg Finance L.P./MNI
