Forex - Flows: Strong China GDP triggering 1 big figure move downwards for USD/CNH, while USD/CNY also moved lower


 02:19 (GMT) 17 Apr

  [Forex Flows]

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Flows: Strong China GDP triggering 1 big figure move downwards for USD/CNH, while USD/CNY also moved lower (0101-KKVP-C01)

USD/CNH saw a sharp move down to 6.7045 from 6.7140. This was propelled by a strong China GDP print: 6.4% y/y vs. our expectations of 6.2%. March numbers look well supported by official stimulus with industrial production (8.5% y/y) seemingly back to 2017 boom numbers. Retail sales also rebounded. The 6.7000 psychological support remains a barrier to the technical support of 6.6694.

PBoC fixed mid-point at 6.7110 vs. previous close of 6.7128. USD/CNY was down to 6.7050 before rebounding to 6.7067. 1Y NDFs similarly followed spot movements down to 6.7444. For USD/CNY, moving below the 6.7000 handle should trigger some profit taking.


Forex - China Flows: Both USD/CNY and USD/CNH remains northwards of 6.7000, in a bid to test resistance levels


 02:33 (GMT) 16 Apr

 [Forex Flows]

USD/CNH is last seen with an attempt to breakaway from the current range of 6.7050-6.7319. China's March new home prices rose 0.61% m/m, a strong performance. This also raises concerns on sustainability. Meanwhile, China's holdings of UST rose a third consecutive month. Pair last in a bid tone up to 6.7136. We view that the 6.7000 big figure is reachable if pair can cross the 5 April low of 6.7023.

PBoC fixed mid-point at 6.7097 vs. previous close of 6.7085. USD/CNY last seen creeping up to 6.7123 last. 1Y NDFs last seen slightly up to 6.7511. 6.7000 remains a big psychological support for USD/CNY.


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