CNH: USD/CNY Fixing Lower Again, Focus On USD/CNH Break Sub 7.1200
The USD/CNY fix printed at 7.0949, versus a BBG market consensus of 7.1196. The fixing error was little changed at -247pips, although we are in from recent wides of -333pips on this metric. USD/CNH has tested under 7.1200 getting to lows of 7.1168, but sits slightly higher now. We haven't seen much follow through selling in the pair post the CNY fixing. Focus will be on whether we can sustain a sub 7.1200 break into the weekend. Broader USD sentiment has stabilized against the safe havens to some extent in recent dealings, with USD/JPY up from 150.00 (coinciding with US equity futures also slightly higher). This has helped trim CNH gains.
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CNH: USD/CNY Fixing Holds Above Recent Lows, Fixing Error Close To Flat
The USD/CNY fix printed at 7.1013, versus a BBG market consensus of 7.1027.
- Today's fix is still above recent lows (7.1008 from Sep 9). The fixing error was close to flat at -14pips.
- The fact we haven't broken down through 7.1000 from a fixing standpoint, despite broader USD softness, has helped push USD/CNH in latest dealings. We were alst around 7.1070. Earlier lows today were at 7.1007 for the pair.
- This backdrop is likely to see CNH maintain a low beta with respect to further USD losses.
CHINA SETS YUAN CENTRAL PARITY AT 7.1013 WEDS VS 7.1027
- CHINA SETS YUAN CENTRAL PARITY AT 7.1013 WEDS VS 7.1027
AUSSIE BONDS: ACGB Dec-35 Auction Result
The AOFM sells A$1200mn of the 4.25% 21 December 2035 bond:
- Average Yield (%): 4.2384 (prev. 4.2776)
- High Yield (%): 4.2400 (prev. 4.2800)
- Bid/Cover: 2.1583x (prev. 3.2417x)
- Allotted at Highest Accepted Yld as % of Bid at that Yld 66.1 (%): (prev. 18.2)
- Bidders: 22 (prev. 33), 13 (prev. 22) successful, 5 (prev. 13) allocated in full
