The USDCNH has continued to grind higher as capital outflows from China ramps up.
According to Reuters, foreigners has pulled $4.54B this month via the stock connect scheme.
We are approaching pervious ‘max pain’ levels for the PBoC between 7.36-37 where we saw previous attempts to curb Yuan losses.
For now the move higher has been supportive of the USD, but any attempts from the PBoC could see knee-jerk moves lower for the USD so worth keeping this on the radar.
USDCNH continues to grind higher