#USDCNH @ 6.89219 is oscillating around 6.9000 as investors await PBoC policy for fresh impetus. (Pivot Orderbook analysis)

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• USD/CNH is oscillating around 6.9000 as investors await PBoC policy for fresh impetus.
• A dovish stance is expected on the LPR by the PBoC as the economy is aiming for a recovery.
• The appeal for the USD Index has been trimmed as investors are dubious about the upcoming Fed’s policy.

The pair currently trades last at 6.89219.

The previous day high was 6.914 while the previous day low was 6.8844. The daily 38.2% Fib levels comes at 6.9027, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.8958, expected to provide resistance.

The USD/CNH has continued to auction sideways around 6.9000 in the Asian session. The major is not delivering any action as investors are awaiting the interest rate decision by the People’s Bank of China (PBoC), which is scheduled for Monday.

S&P500 futures are showing minimal losses in the Asian session after a stalwart recovery on Thursday, portraying an improvement in the risk appetite of the market participants. The US Dollar Index (DXY) has delivered a breakdown of the consolidation formed in a narrow range of 104.30-104.60. The appeal for the USD Index has trimmed as investors are dubious about the upcoming monetary policy by the Federal Reserve (Fed) after a decline in the United States inflation and broadening banking turmoil.

Sluggish demand for US government bonds after a confident recovery in the 500-US stocks basket futures has improved returns offered on the same. The 10-year US Treasury yields have surpassed the 3.59% figure.

Going forward, the release of the PBoC’s monetary policy decision will be in focus. Economist at UOB Group suggests that the PBoC could reduce the Loan Prime Rate (LPR) at its next meeting on March 20. They further added, “With the need for further support measures toward the real economy and for 5Y loan prime rate (LPR) to fall further to boost demand for homes, we see the possibility for the 1Y LPR to fall to 3.55% and 5Y LPR to 4.20% in Mar, following the National People’s Congress (NPC).”

Meanwhile, an upside revision in China’s Gross Domestic Product (GDP) forecasts would support the Chinese Yuan. Investment banking firm, Goldman Sachs, has revised its 2023 China GDP projections to 6.0% from the prior estimation of 5.5%.

Technical Levels: Supports and Resistances

USDCNH currently trading at 6.8988 at the time of writing. Pair opened at 6.8944 and is trading with a change of 0.06 % .

The pair is trading below its 20 Daily moving average @ 6.9192, above its 50 Daily moving average @ 6.8367 , below its 100 Daily moving average @ 6.9558 and below its 200 Daily moving average @ 6.9276

The previous day high was 6.914 while the previous day low was 6.8844. The daily 38.2% Fib levels comes at 6.9027, expected to provide resistance. Similarly, the daily 61.8% fib level is at 6.8958, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 6.8812, 6.868, 6.8516
• Pivot resistance is noted at 6.9108, 6.9272, 6.9404

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