The USD/CNY fixing printed at 7.1315, versus a Bloomberg consensus of 7.2519.

• This is only a modest step down from yesterday's 7.1339 fixing outcome. The fixing error tightened to -1204pips, in USD/CNY terms, versus yesterday's -1381pip outcome.
• This is unlikely to add anything to near term positive CNH momentum. Indeed, USD/CNH has risen modestly post the fixing outcome, but found selling interest above 7.2700.
• The chart below overlays the rolling 1 month change in the USD/CNY fixing and the 1 month rolling change in the BBDXY USD index.
• The USD/CNY fixing is only moderately off recent highs compared to USD weakness seen over the past month.

Fig 1: USD/CNY Fixing & BBDXY USD Index Rolling 1 Month Change

Source: MNI - Market News/Bloomberg