27 Nov 2015
USD/CNY found a mysterious wall - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that a glance at a nearby chart will reveal USD/CNY found a mysterious wall @ 6.3900 to the topside.
Key Quotes:
"We retain a bullish bias another week. SDR day is Monday and while press reports have already confirmed our earlier note (one week ago in this publication) that the RMB weight in the basket will be lower than the 14% once touted, any lower weight than the 9-10% that's now being touted may push to the righthand side.
DF is still a buy given the ban against onshore to offshore flows and generally we suspect a customer bias to buy on dips. The main manufacturing PMI consensus is flat but we had reported earlier lesser-watched PMIs were indicating weaker."
Key Quotes:
"We retain a bullish bias another week. SDR day is Monday and while press reports have already confirmed our earlier note (one week ago in this publication) that the RMB weight in the basket will be lower than the 14% once touted, any lower weight than the 9-10% that's now being touted may push to the righthand side.
DF is still a buy given the ban against onshore to offshore flows and generally we suspect a customer bias to buy on dips. The main manufacturing PMI consensus is flat but we had reported earlier lesser-watched PMIs were indicating weaker."