The USDCNH currency pair has seen an increase in buying interest, causing it to reach a new high for the day, following disappointing data from China’s Caixin Manufacturing PMI.
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- USD/CNH picks up bids to refresh intraday high after downbeat China Caixin Manufacturing PMI.
The pair currently trades last at 7.17224.
The previous day high was 7.1592 while the previous day low was 7.133. The daily 38.2% Fib levels comes at 7.143, expected to provide support. Similarly, the daily 61.8% fib level is at 7.1492, expected to provide support.
USD/CNH renews its intraday high near 7.1740 before retreating to around 7.1700 by the press time of early Tuesday as markets react to the downbeat China activity data amid broad US Dollar strength. In doing so, the offshore Chinese Yuan (CNH) pair prints the first daily gains in three, up 0.31% intraday by the press time.
China Caixin Manufacturing PMI for July fails to trace its upbeat NBS counterpart while declining to 49.2 for July from 50.5 prior, versus 50.3 market forecasts. With this, the private activity gauge drops to the lowest level since January.
It’s worth noting that China’s state planner National Development and Reform Commission (NDRC) issued a notice to promote the high-quality development of private investment earlier in the day. That said, Chinese authorities also announced measures to boost consumption on Monday and bolstered the market sentiment.
Despite the risk-on mood, firmer yields and the US Dollar’s preparations for this week’s top-tier employment and activity data propel the USD/CNH pair of late.
On the same line could be the fears of the Sino-America tensions as China’s Commerce Ministry renews the Sino-US trade war fears by announcing measures to limit exports of some drones and drone-related equipment, starting from September 01, by citing the “national security and interests” late Monday suggests Reuters.
On Monday, the US Dollar Index (DXY) managed to remain firmer, grinding higher towards 102.00 by the press time, despite witnessing mixed US data. That said, Dallas Fed Manufacturing Business Index improves to -20.0 for July from -23.2 prior versus -26.3 expected whereas Chicago PMI rose to 42.8 from 41.5 prior versus 43.0 market forecasts. In doing so, the DXY ignores Friday’s softer prints of US inflation clues and the weekend comments from Minneapolis Fed President Neel Kashkari’s criticism of higher interest rates.
Talking about the mood, S&P500 Futures trace Wall Street and print mild gains by the press time whereas the US 10-year and two-year Treasury bond yields edge higher of late.
Looking ahead, the mixed mood can help the offshore Yuan sellers ahead of the US US ISM Manufacturing PMI for July and JOLTS Job Opening for June.
A six-week-old symmetrical triangle restricts immediate USD/CNH moves between 7.2040 and 1.1350.
Technical Levels: Supports and Resistances
USDCNH currently trading at 7.1698 at the time of writing. Pair opened at 7.1464 and is trading with a change of 0.33% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 7.1698 |
| 1 | Today Daily Change | 0.0234 |
| 2 | Today Daily Change % | 0.33% |
| 3 | Today daily open | 7.1464 |
The pair is trading below its 20 Daily moving average @ 7.1903, above its 50 Daily moving average @ 7.1692 , above its 100 Daily moving average @ 7.0408 and above its 200 Daily moving average @ 7.0038
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 7.1903 |
| 1 | Daily SMA50 | 7.1692 |
| 2 | Daily SMA100 | 7.0408 |
| 3 | Daily SMA200 | 7.0038 |
The previous day high was 7.1592 while the previous day low was 7.133. The daily 38.2% Fib levels comes at 7.143, expected to provide support. Similarly, the daily 61.8% fib level is at 7.1492, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 7.1331, 7.1199, 7.1068
- Pivot resistance is noted at 7.1594, 7.1725, 7.1857
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 7.1592 |
| Previous Daily Low | 7.1330 |
| Previous Weekly High | 7.2134 |
| Previous Weekly Low | 7.1160 |
| Previous Monthly High | 7.2744 |
| Previous Monthly Low | 7.1160 |
| Daily Fibonacci 38.2% | 7.1430 |
| Daily Fibonacci 61.8% | 7.1492 |
| Daily Pivot Point S1 | 7.1331 |
| Daily Pivot Point S2 | 7.1199 |
| Daily Pivot Point S3 | 7.1068 |
| Daily Pivot Point R1 | 7.1594 |
| Daily Pivot Point R2 | 7.1725 |
| Daily Pivot Point R3 | 7.1857 |
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