CNH: USD/CNY Fixing Lower Again, Focus On USD/CNH Break Sub 7.1200

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

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