USD/CNH reached its 11-month high at CN¥7.3681 in September, just below its October 2022 peak at CN¥7.3773. Since then, it has dropped to CN¥7.2392, which was its early September low, and then to the CN¥7.2596 mid-September trough. The currency has since gradually risen again.
Fed member Kashkari’s speech on Monday, which predicted another rate hike, helped the US dollar gain value despite its ten consecutive weeks of gains.
If USD/CNH rises above last week’s high at CN¥7.3214, it could reach the August and September highs at CN¥7.3497 and CN¥7.3681. Immediate upside pressure will be maintained if the cross stays above Monday’s CN¥7.2946 low. If it falls below it, the July-to-September uptrend line can be seen at CN¥7.287.
UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia believe that USD/CNH continues to indicate further side-lined trade in the short-term horizon.
The People’s Bank of China has set the reference rate for the onshore yuan (CNY) for the trading session ahead.
The USD/CNY is the onshore yuan, which is allowed to trade within a 2% range from the daily reference rate. On the other hand, the offshore yuan is known as CNH, and there are no restrictions on its trading range against the USD. If the rate turns out to be significantly stronger or weaker than expected, it is usually considered a signal from the PBOC. The previous close was noted at 7.3125.
There seems to be a significant divergence between the modeled estimate and the actual rate. The daily reference rate is currently stuck on the 7.17 big figure, and the People’s Bank of China is determined to keep the yuan from falling further. Today’s mid-rate is the strongest for the CNY since August 14.
It’s worth noting that China will be going on holiday on Friday and won’t be back until October 9. In other news, the PBoC has stated that it’ll step up its policy coordination and implement monetary policy forcefully and precisely.
The PBOC has injected 200bn in open market operations (OMOs) via 7-day RR, and the rate has been set at 1.80%. Additionally, the PBOC has injected 417bn in open market operations (OMOs) via 14-day RR, and the rate has been set at 1.95%. Today, 205bn yuan of RRs will mature, resulting in a net 412bn yuan injection on the day in OMOs. The 14-dayers will help provide liquidity over the week-long holiday coming up.
This trading signal is locked
Login To Unlock The Signal!
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
Signal Mastermind Signals is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Mastermind Signals believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Mastermind Signals does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Mastermind Signals to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Mastermind Signals assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Mastermind Signals are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Mastermind Signals assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a trading account or use the services, free of charge or paid, to any of the Broker companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex/CFD trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before each Forex/CFD investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Mastermind Signals nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.