USD/CNY rises to fresh six-year high on weaker PBOC fix
|Another weaken Yuan daily fix by the People’s Bank of China (PBOC) amid broad based USD strength pushed USD/CNY pair to a fresh six-year high of 6.7747 levels.
PBOC set Yuan reference rate at 6.7690 vs Friday’s fix of 6.7558. The central bank has been steadily weakening Yuan off late. Meanwhile, off shore Yuan as represented by USD/CNH pair rose to a high of 6.7849.
Moreover, PBOC is weakening Yuan at a time when the US dollar is ruling the roost across the board. Hence, the drop in Yuan is more pronounced.
Sliding Yuan is indeed taking a toll on its neighbours. Japan reported trade data today which showed 10.6% drop in exports to China.
USD/CNY Technical Levels
The pair was last seen trading around 6.7729. A break above today’ high of 6.7747 would open doors for 6.7805 (June 2010 low). On the lower side, breach of support at 6.7017 (July 2016 high) would expose 6.6684 (monthly low).
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