From the FXWW Chatroom: FX traders in Asian markets apparently more focused on China and the CNH. Funding remains expensive – at one point market was offering +700 in the overnight swaps, hoping for desperados. Fixing at 6.8668 as supposed to consensus of 6.8500-6.8650. Funding eased – overnight traded from +650 to +450; spot USDCNH rose from 6.7900 to 6.8250. That boosted Usd strength across most pairs.
USDCNH rose to 6.8417, sellers from North Asia surfaced; seems like they are liquidating long Usd positions. USDDCNH drifted lower to settle low side of 6.82’s.
USDCNH move took UsdJpy above the Ichimoku Cloud Daily Baseline of 115.77 and printed 116.02. We later got to 116.135 before exhaustion sets in. UsdJpy returned to 115.70’s
UsdCad followed the Usd or USDCNH. Oil futures has been stable while UsdCad edged up 30-pips from where Toronto closed. The 100-Day SMA at 1.3263 offered some resistance while long-term trendline support seen near 1.3150. There is a 1.3300 option expiry today New York cut, worth about $1.3bn
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