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2 Feb 2016
Yuan fix on the horizon - Westpac
FXStreet (Guatemala) - Analysts at Westpac noted the previous action in the Yuan and previews today's fix coming up.
Key Quotes:
"Spot USD/CNY consolidated the early gain driven by the slight upside surprise on the fixing rate. The official close was 6.5792 and USD/CNH ground up from 6.60 to 6.62 by the Sydney morning. After 6 consecutive USD/CNY fixings of a marginal fall (-0.01% or -0.02%), Monday’s 0.04% rise (23 pips) had to attract attention.
It was of course the first daily fixing since the Bank of Japan’s surprise adoption of negative interest rates so another increase in the USD/CNY fixing today would hint at Chinese concern over the USD/JPY outlook.
But most likely stability will be prized in this final week before the lunar new year holidays, with a print in the 6.5530-50 area taken calmly."
Key Quotes:
"Spot USD/CNY consolidated the early gain driven by the slight upside surprise on the fixing rate. The official close was 6.5792 and USD/CNH ground up from 6.60 to 6.62 by the Sydney morning. After 6 consecutive USD/CNY fixings of a marginal fall (-0.01% or -0.02%), Monday’s 0.04% rise (23 pips) had to attract attention.
It was of course the first daily fixing since the Bank of Japan’s surprise adoption of negative interest rates so another increase in the USD/CNY fixing today would hint at Chinese concern over the USD/JPY outlook.
But most likely stability will be prized in this final week before the lunar new year holidays, with a print in the 6.5530-50 area taken calmly."