Free Trial

USD/CNH last trades at CNH6.8095, ~20....>

CHINA YUAN: USD/CNH last trades at CNH6.8095, ~20 pips higher. The PBOC set
today's yuan fixing vs. the dollar at CNH6.7665 vs. the RTRS est. of CNH6.7683.
- The pair eased off in yesterday's Asia-Pac hours on the back of stronger than
exp. yuan fixing, before weak Chinese trade data forced USD/CNH to tick away
from lows. The pair then extended gains through the rest of the day, as
conflicting signals re: Sino-U.S. trade relations fuelled uncertainty.
- Worth noting that at a campaign rally today U.S. Pres Trump said that China
"broke the deal" and "will be paying for it." Trump's comments sent USD/CNH to a
fresh session high, but the move has been retraced.
- Yesterday's higher close allowed bulls to uphold the upside momentum, drawing
their attention to the 200-DMA at CNH6.8260. Above here would expose the
measured target at CNH6.8296, after the pair charted a triple bottom pattern in
the recent months. On the downside, bears need a fall through CNH6.8000 before
attempting a run at the 100-DMA, located at CNH6.7586.
- Chinese CPI & PPI figures are due shortly. Also worth reminding that the 11th
round of Sino-U.S. trade talks kick off today.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.