USD/CNH bid on risk aversion, peeps above 100-day MA

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.

Omkar Godbole FXStreet Contributor

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

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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