CNY fixed at fairly neutral levels - Westpac

The CNY has been fixed at fairly neutral levels compared with basket move in recent sessions, notes Frances Cheung, Research Analyst at Westpac.

Key Quotes

“USD/CNY is likely to hover around the 23.6% retracement of 6.3105, with a downward bias 1/ if protectionism hurts the USD near-term; 2/ as the risk of a strong hawkish signal from the FOMC has eased; 3/ as the chance is for the PBoC to hike OMO rates and/or MLF rates by 5-10bp, given that there is still a gap between OMO and money market rates albeit not as wide as when the PBoC hiked rates previously. Market also awaits the revelation of the new PBoC governor and the chief of the combined regulatory commission, among other senior officials.”