15 Feb 2016
CNY fix on China's return - Westpac
Analysts at Westpac noted that China is back from the week-long holiday and look towards the fix as a risk event.
Key Quotes:
"The USD/CNY fixing was pushed down notably into the lunar new year, falling 100 pips on both 4 Feb and 5 Feb, to 6.5314. In the week China markets were closed, the slump in USD/JPY was the main event, which itself should bias the fixing lower.
USD/CNH fell steadily over the week, from around 6.57 to the 6.51 area so markets should be expecting one of the largest daily falls in the USD/CNY fixing in a long time, as it plays catch-up. A 6.51 handle should not surprise though we note this would still leave the pair above end-Dec levels."
Key Quotes:
"The USD/CNY fixing was pushed down notably into the lunar new year, falling 100 pips on both 4 Feb and 5 Feb, to 6.5314. In the week China markets were closed, the slump in USD/JPY was the main event, which itself should bias the fixing lower.
USD/CNH fell steadily over the week, from around 6.57 to the 6.51 area so markets should be expecting one of the largest daily falls in the USD/CNY fixing in a long time, as it plays catch-up. A 6.51 handle should not surprise though we note this would still leave the pair above end-Dec levels."