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USD/CNH Holds Close to 50-Day MA

CNH

USD/CNH continues to oscillate around the 50-day MA. This level comes in at 6.6801. We have been as low as 6.6770 today, but last tracked back above 6.6800, as China equities give back some of their earlier gains.

  • It may be the case the 50-day MA level is not an important one from a technical standpoint. After all, in recent weeks dips below 6.6700 have been supported, while in May the pair spent little time sub 6.6500.
  • Still, as the chart below highlights, back in mid-March the break above the 50-day MA kicked off a decent bounce in USD/CNH. We also couldn't get back below this level once we had broken higher. Hence it could be an important inflection point for the market.

Fig 1: USD/CNH & The 50-Day MA

Source: MNI - Market News/Bloomberg


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