CNH: USD/CNY Fixing Lower, Fixing Error Widens As Consensus Below 7.00
The USD/CNY fix printed at 7.0288, while the BBG market consensus was below the 7.00 level at 6.9966. The USD/CNY fixing was below yesterday’s and last week’s levels resuming the downtrend. Tuesday’s fix was at 7.0348. With both the onshore and offshore yuan trading below 7.00, there could be further warnings not to make one-way FX bets. The fixing error widened to +322pips up from yesterday’s +212pips.
- The onshore USD/CNY also tested 7.00 yesterday falling to a low of 6.9875 before rising above 6.9950. It finished down 0.15% at 6.9958. The pair is tightly managed and the market’s test is unusual but may reflect some official acceptance of a stronger currency.
- USD/CNH broke below 7.00 during APAC trading on Tuesday reaching a low of 6.9810 but then stabilised just above 6.9900. Today it rose to 6.9942 but then fell to 6.9856 post the fixing, and is currently around 6.9894.
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MNI: CHINA PBOC CONDUCTS CNY107.6 BLN VIA 7-DAY REVERSE REPO MON
- CHINA PBOC CONDUCTS CNY107.6 BLN VIA 7-DAY REVERSE REPO MON
CNH: USD/CNY Fixing Again Above Mkt Estimate, CNH Little Impacted
The USD/CNY fix printed at 7.0759, versus a consensus estimate of 7.0713. This represents a fixing error of +46pips, the third day in a row of positive fixing surprises. Spot USD/CNH is little changed though, still under 7.0700 and getting close to 7.0653, which was the recent low from late Nov. Broader USD is softer, led by JPY gains. This is likely spilling over to USD/CNH.
CHINA SETS YUAN CENTRAL PARITY AT 7.0759 MON VS 7.0789
- CHINA SETS YUAN CENTRAL PARITY AT 7.0759 MON VS 7.0789
