Free Trial

USDCNH is off its highs but still up.....>

CHINA YUAN
CHINA YUAN: USDCNH is off its highs but still up on the day as the 6.70 level
now acts as support. Upside pressure is building amid renewed fears over
US-China trade talks and increasingly dovish PBOC policy. The Jan 22 high at
6.8188 is the next upside target, above which would reignite upside momentum. 
- After a few weeks of outperformance regional yuan crosses are giving back
gains with CNHJPY threatening to roll over should the 21dma give way just below
current levels. CNHKRW is also at daily lows as the 200dma support level comes
back into play. 
- The ongoing narrowing between the 12 month NDF outright and USDCNH suggests
caution is warranted from a contrarian perspective as depreciation fears have
receded.

To read the full story

Close

Why MNI

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.