Spot USDCNY traded above 6.39

The fixing is likely to be higher further as the USD strengthened further overnight.

OCBC Treasury Research noted:

The USDCNY fixing was set out of familiar range of 6.30-6.33 at 6.3339 on Tuesday as a result of strong dollar. The spot USDCNY was traded above 6.3900 yesterday, close to 1% upper ceiling. The fixing is likely to be higher further today as the USD strengthened further overnight, which may open 6.40 for the USDCNY spot.

Chinese clients net purchased US$10.7bn in the forward market in June, the third consecutive months since April. The quickly rising demand for forward dollar pushed the swap points higher in the onshore market, almost converging to the offshore DF curve.