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What today's Yuan fix means for risk?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - Today's PBOC fix on USD/CNY, set at 6.5636 vs 6.5646 last, which is significantly lower than Nomura's estimates - projected the fix to be higher by 256 pips from the previous fix (6.5902 from 6.5646) - has seen the likes of the Aussie and Kiwi spike higher.

    The decision is perceived as risk friendly, given that the PBOC has receded from devaluing the Yuan. Key now is to see the Shanghai cash open reaction, wit an uptick in equities to further support the temporary risk relief rally. That said, the underlying trend in Aussie remains lower, with the USDJPY still also in a very strong downtrend.
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