USD/CNH drops below 200-HMA after Trump comments

• The US President Trump’s comments on Huawei case and trade tensions with China are likely lifting CNH and other risky assets.
• The USD/CNH pair is currently trading well below the 200-hour MA (HMA).

Having breached the 200-HMA earlier today, the USD/CNH pair (offshore yuan exchange rate) is now trading at a session low of 6.8840 – down 0.30 percent on the day.

The Chinese yuan is being pushed higher at press time likely in response to Trump’s optimistic comments on US-China trade relations and Huawei CFO arrest.

The US President Trump, while speaking to Reuters, said that he would intervene in the Huawei case if it would help achieve a trade deal with China and boost national security. He added further that trade negotiations are taking place and expressed readiness to meet China’s Xi Jinping if required. He also criticized Fed’s plans to raise rates next week.

Looking forward, the risky assets may continue to cheer Trump’s comments. As a result, the USD/CNH pair may slide further toward 6.8668 (Oct. 11 low).

USD/CNH Technical levels