CNY NDF
USD/CNY fixing came out much lower than expected today to a new record low. Since overall positions are rather light, we saw leverage guys came back selling across the curve. Real money accounts were still rolling their short positions in the 3mth tenor. Chinese names are still buying to support the curve. The low fixing could start another round of CNY appreciation at this month end. Still prefer to short the front end while looking to buy the back on dips.
– CNY NDF RUN
1mth 6.4530/50
3mth 6.4400/40
6mth 6.4260/90
1 year 6.3930/60
CNH
USD/CNH plunged along with onshore spot after PBoC set the fix at record low. This encouraged some renewed selling on expectation that appreciation to resume. Forwards were a touch softer in 6s on selling outright selling. 1yr last quoted 250/220
HSBC Global Research