USD/CNH falls to its lowest level since 27 September
The yuan is continuing to push forward with gains against the greenback as talks of a US-China trade resolution continues to fuel the rally seen in the past two days. Suddenly, talks of 7.00 has almost all but evaporated and the surge higher in the yuan here will continue to give added backing to gains seen in the aussie and the kiwi ahead of the US jobs report later.
In turn, this will continue to keep the dollar pinned down as well. What's helping to provide real backing to this rally here is that we're seeing foreigners flock back to Chinese markets and they appear to be in a hurry to do so.
China's stock connect data shows that inflows into mainland Chinese equities today hit a historical high and that's fueling conversion from foreign currencies (mostly dollar as it is the common base) into the yuan:
China's Shanghai Composite ended the day 2.7% up on the day, ending at session highs.
