KF - Asia Market Update: A Busy Session Is Unfolding
By Stephen Innes
The Yuan
USD bullish sentiment post FOMC minutes outweighs Treasury FX Report. The CNH playbook remains intact and should not provide any is a significant short-term relief for local EM currencies. High US bond yields and a rebounding US dollar continue to pose substantial headwinds.
The Yuan fix came in at 6.9275 vs. 6.9235 but +30 higher than market estimates. Given the focus on all things Yuan, it has triggered a call to action for Yuan bears who have promptly paid the USDCNH market above 6.935 level during the opening salvo. The