USD/CNH portrays the market’s indecision around 6.8950, despite easing to 6.8930 during early Wednesday. In doing so, the offshore Chinese Yuan (CNH) pair signals the cautious mood ahead of the US Consumer Price Index (CPI) for March and the Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting.
It’s worth noting that the recently downbeat China Treasury bond yields and comments from the International Monetary Fund (IMF) jostle with the broad US Dollar weakness to challenge the USD/CNH bulls after keeping the reins in the last two consecutive days.
China’s headline 10-year Treasury bond yields drop to the lowest levels since November 2022, to 2.815% by the press time, as traders brace for further easing from the People’s Bank of China (PBOC), especially after the previous day’s downbeat inflation. That said, China’s headline inflation numbers for March, namely the Consumer Price Index (CPI) and Producer Price Index (PPI), came in 0.7% YoY and -2.5% YoY versus 1.0% and -1.4% respective priors.
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