CNY NDF and CNH Markets

Tuesday, 19 April 2011 07:22

USDCNY fix come out only slightly higher than the historical low on Friday. Chinese names are the main the buyers mainly due to lack of offers when Euroland went into a spin.

Most traders prefer the carry and will sell into the rally in 1yr between 6.3900 and 6.4000 given the chance of more tightening measures to contain inflation the 1yr opened at 6.3800 and closed at the high of 6.3860.

CNH Spot and Forwards: $/CNH traded with in tight ranges 6.5200-6.5240, last at 6.5240. Market stayed very quiet until Chinese names pushed it higher before the close. 1yr forward dealt in small between -970 to -950, last quoted -1000/-950.

CNY Spot FX: Today's fixing is 6.5310, 9pips higher than yesterday with very strong dollar overnight, spot was given down to 6.5280 level and stable there. Trading range was between 6.5276-6.5320, and closed at 6.5287 should see a higher fixing tomorrow.

Forwards / Swaps: Market opened firmer as the EUR weakened against dollar last weekend and the 0.5% RRR hike of CNY last Sunday. 1yr swap and forward both climbed by around 60-80 pips but was capped by profit taking.

Market stabilized in the afternoon. 3mth/6mth/9mth/1yr closed at – 250/-450/-700/-950 for swap and -300/-550/-850/-1100 for forwards.