Daily outlook for CNY: Commerzbank

Quotes from Commerzbank Corporates & Markets:

-CNY: The HSBC flash PMI for February improved to 50.1 from 49.7 last and above expectations of 49.5. However, the reliability of the data is questionable given the backdrop of irregular seasonality associated with Lunar New Year holidays and is unlikely to be influential on market thinking on the economy.

-The PBoC set the USD-CNY fix at 6.13840 up sharply on the pre-holiday fix of 6.1330. USD-CNY spot is trading at 6.2599, which is just below the upper band of 6.2612. We expect USD-CNY to remain elevated until end Q3 and resume a modest downward trend thereafter.