CNH: USD/CNY Fixing Only Modestly Higher, USD/CNH Lower

The USD/CNY fix printed at 7.1008, versus a BBG market consensus of 7.1249.

• This is another low back to Nov 6 last year (just under 7.1000). The fixing error was slightly tighter at -241pips (versus -294pips yesterday).
• USD/CNH has tested sub 7.1200 in early dealings today, but from lows of 7.1178 we have seen some support (last around 7.1205/10). Late August lows were at 7.1159.
• Focus will now be on the onshore spot open we closed Monday at 7.1298). 

• CHINA SETS YUAN CENTRAL PARITY AT 7.1008 TUES VS 7.1029

US Equities are consolidating as the market contemplates what the next potential driving factor will be, interest rate cuts or the slowdown in growth that leads to the cuts. This morning US futures have opened slightly higher, E-minis +0.05%, NQU5 +0.05%. The AUD has traded sideways in the crosses albeit with an outperforming bias, AUD/JPY managed to hold onto most of its gains after yesterdays early Monday morning gap higher.

• EUR/AUD - Overnight range 1.7787 - 1.7848, Asia is currently trading around 1.7840. The pair found good demand just below its first support around the 1.7800 area, below there the next support is around 1.7600. The wider range has been 1.7600-1.8150.
• GBP/AUD - Overnight range 2.0514 - 2.0565, Asia is trading around 2.0555. The pair again found demand towards 2.0500, expect sellers towards 2.0700 initially. The wider range of 2.0400-2.1000 continues to contain.
• AUD/JPY - Overnight range 97.12 - 97.43, Asia is trading around 97.20. The pair topped out towards 97.50 but has held onto most of its gains on the gap higher yesterday unlike USD/JPY. A sustained break above 97.50/98.00 is needed to reignite the upward trend. 
• AUD/NZD -  Overnight range 1.1090 - 1.1123, the cross is dealing in Asia around 1.1130. The Cross is consolidating around 1.1100, dips back towards 1.1000/1.1050 should be supported now.

Fig 1: AUD/JPY spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P