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20 Mar 2014
USD/CNH breaks above 6.20 post weaker Yuan fix
FXStreet (Bali) - People’s Bank of China (PBOC) set the yuan reference rate at 6.1460 vs as prior set of 6.1351.
The higher fix has taken USD/CNH marginally above 6.20, triggering some stops , with some exotic/WMP structures also likely to have gone off. AUD/USD is trading weaker post fix, finding a new session low of 0.90.
The PBOC announced it will conduct repos today, draining liquidity by selling 26bn yuan in 28-day repos, totaling drains of 48bn yuan for the week vs 40bn drained last week. At present, the 7-day repo stands at 3.4% vs 3.42% prior close, while the overnight repo opened at 3.0% vs 2.8%.
The higher fix has taken USD/CNH marginally above 6.20, triggering some stops , with some exotic/WMP structures also likely to have gone off. AUD/USD is trading weaker post fix, finding a new session low of 0.90.
The PBOC announced it will conduct repos today, draining liquidity by selling 26bn yuan in 28-day repos, totaling drains of 48bn yuan for the week vs 40bn drained last week. At present, the 7-day repo stands at 3.4% vs 3.42% prior close, while the overnight repo opened at 3.0% vs 2.8%.