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18 Jan 2016
USD/CNY fix approachs in otherwise quiet outlook - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac noted todays key events and explained that the USD/CNY midpoint fixing was in a tight 6.5616-37 range last week so the safest guess is another fixing in this region.
Key Quotes:
"However, most spot USD/CNY trade since Wed has been in the 6.5850-6.5900 area, with a 4:30pm rate of 6.5873 on Friday and a CFETS close of 6.5840. USD/CNH meanwhile is only just dipping back below 6.60 as newswires report new rules aimed at limiting yuan short selling by foreign banks. There is no reason to expect any trade with a 6.56 handle today despite the likely low fixing.
The Australian calendar is limited to the release of the Dec TD-MI inflation gauge. It is currently pointing to a Q4 CPI print of sub 0.5% q/q. Singapore Dec non-oil domestic exports are out at 11:30amSyd/8:30am local. Consensus is for a fall of 4.4% y/y as electronics exports drag. China Dec 70 city property prices is out at 12:30pm Syd/9:30am Beijing. While there have been signs of stabilisation in tier 1 cities, momentum still has not built in tier 2 and 3 cities. US markets are closed for Martin Luther King Day."
Key Quotes:
"However, most spot USD/CNY trade since Wed has been in the 6.5850-6.5900 area, with a 4:30pm rate of 6.5873 on Friday and a CFETS close of 6.5840. USD/CNH meanwhile is only just dipping back below 6.60 as newswires report new rules aimed at limiting yuan short selling by foreign banks. There is no reason to expect any trade with a 6.56 handle today despite the likely low fixing.
The Australian calendar is limited to the release of the Dec TD-MI inflation gauge. It is currently pointing to a Q4 CPI print of sub 0.5% q/q. Singapore Dec non-oil domestic exports are out at 11:30amSyd/8:30am local. Consensus is for a fall of 4.4% y/y as electronics exports drag. China Dec 70 city property prices is out at 12:30pm Syd/9:30am Beijing. While there have been signs of stabilisation in tier 1 cities, momentum still has not built in tier 2 and 3 cities. US markets are closed for Martin Luther King Day."