(VIANEWS) – USD/CNH (USDCNH) is currently on bullish momentum. At 00:06 EST on Wednesday, 5 October, USD/CNH (USDCNH) is at 7.0531, 1.61% up since the last session’s close.
Why is USD/CNH Currency Pair Going Up?
The USD/CNH currency pair is in a bullish stance. Its recent up-moves are consistent with the broader trend of the Chinese economy. However, the US Dollar has stayed on its front foot ahead of this month’s payrolls print. This has capped the USD/CNH pair from breaking below 6.9000. The Chinese government’s stance against the FX rate may also have something to do with the USD/CNH’s recent up-move.
China is the world’s largest exporter and the CNY is sensitive to both factors. Its currency value is influenced by trade agreements and tariffs. In recent years, the US raised its tariffs on Chinese goods and China responded by depreciating its currency. It is important to remember that currencies are positively correlated, meaning they tend to move in the same direction. On the other hand, negatively correlated assets tend to move in the opposite direction. That’s why the USD/CNH currency pair is positively correlated with EURNZD and EURCHF. However, it still has negative correlations with EURNZD, AUDCHF, and GBPUSD.
The USD/CNH currency pair is based on the US dollar against the Chinese renminbi, or yuan. In China, the currency is referred to as CNH, while when it’s traded outside of the country, it’s called Yuan. The US Dollar is the world’s second largest economy, and the Chinese yuan is the world’s largest exporter. The USD/CNH currency pair is impacted by global events, political events, and economic data. If one or both of the countries experiences better than forecasted economic growth or worsening financial conditions, the currency value will go up.
USD/CNH (USDCNH) Range
Concerning USD/CNH’s daily highs and lows, it’s 2.084% up from its trailing 30 days low of $6.91 and 1.787% down from its trailing 30 days high of $7.18.
USD/CNH’s yearly highs and lows, it’s 0.374% up from its 52-week low and 0.135% down from its 52-week high.
Forex Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, USD/CNH’s Forex is considered to be overbought (>=80).
Previous days news about USD/CNH (USDCNH)
- Usd/cnh set to reach the 7.35 level – credit suisse. According to FXStreet on Monday, 3 October, "As such, we re-entered long USD/CNH with a target of 7.35, and forecast a wider trading range of 7.00-7.45 for Q4."
More news about USD/CNH (USDCNH).