- USD/CNH is solidly bid, now trading above the 100-day MA.
- The risk-off tone in the equity markets is likely pushing the dollar higher across the board.
The offshore Chinese yuan (CNH) is taking a beating amid risk aversion in the equity markets.
The USD/CNH pair is currently trading at 6.8867; up 0.40 percent on the day and above the 100-day moving average (MA) of 6.8831.
The solid gains are likely associated with risk aversion in the Asian equities and the resulting demand for the safe haven treasuries.
As of writing, the Shanghai Composite index is down 1.2 percent and Japan’s Nikkei is reporting a 2.5 percent loss. Other Asian majors are also flashing red, possibly due to concerns over the inversion in the US treasury yield curve and uncertainty surrounding the details of the US-China trade truce.
Further, worries over Huawei CFO are likely weighing hurting Asian stocks, according to a Reuters report.
More importantly, the risk-off tone seems to have boosted demand for the US treasuries. That is evident from 10-year yield’s slide to 2.878 percent – the lowest level since the first week of September.
As a result, the dollar is better bid against the Chinese yuan and other majors. The greenback, however, may come under pressure if the Us ISM non-manufacturing shows a slowdown in inflation and labor market.
USD/CNH Technical Levels
USD/CNH
Overview:
Today Last Price: 6.8861
Today Daily change: 2.6e+2 pips
Today Daily change %: 0.382%
Today Daily Open: 6.8599
Trends:
Previous Daily SMA20: 6.928
Previous Daily SMA50: 6.9238
Previous Daily SMA100: 6.8839
Previous Daily SMA200: 6.6428
Levels:
Previous Daily High: 6.8728
Previous Daily Low: 6.8462
Previous Weekly High: 6.9587
Previous Weekly Low: 6.9306
Previous Monthly High: 6.9808
Previous Monthly Low: 6.8525
Previous Daily Fibonacci 38.2%: 6.8626
Previous Daily Fibonacci 61.8%: 6.8563
Previous Daily Pivot Point S1: 6.8465
Previous Daily Pivot Point S2: 6.8331
Previous Daily Pivot Point S3: 6.8199
Previous Daily Pivot Point R1: 6.873
Previous Daily Pivot Point R2: 6.8862
Previous Daily Pivot Point R3: 6.8996