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100-DMA Support Close By For USD/CNH

CNH
  • Offshore yuan weakened on Thursday, one of only a handful of underperformers against the greenback. USD/CNH rejected the 6.50 level earlier this week and dropped as low as 6.4614 on Wednesday before grinding higher through the session on Thursday, the pair hit intraday highs of 6.4718 and closed at 6.4757, last down 15 pips at 6.4742.
  • A bounce would bring the downward sloping 200-DMA at 6.5017 into focus, while support is seen just below the current rate at 6.4637. Chinese stocks have posted four consecutive sessions of gains this week and the 100-DMA could be vulnerable in a positive risk environment, with US market closing higher.
  • There are no economic releases on the docket today, markets will await comments over the weekend and early next week as US Deputy Secretary of State Sherman travels to China to meet with her counterpart.

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