USD/CNH: Bulls and bears jostle above $6.4500 on China’s return amid brighter mood, upbeat data

USD/CNH bounces off intraday low, stays sidelined for the second consecutive second day.
China Caixin Services PMI, US debt ceiling extension favor risk appetite.
Firmer sentiment weighs on USD ahead of US NFP.

Anil Panchal FXStreet

USD/CNH remains depressed around 6.4520, down 0.05% on a day amid traders’ indecision during early Friday.

China’s return after a week, backed by the People’s Bank of China’s (PBOC) readiness to keep the markets liquid favor the offshore Chinese Yuan (CNH) buyers. Also positive for the CNH is the Caixin Services PMI for September, 53.4 versus 50.7 expected and 46.7 prior.

Additionally, the market’s upbeat sentiment, backed by the US Congress’ passage of the bill favoring the debt ceiling extension by $408 billion until early December 2021, also challenges USD/CNH bulls. On the same line were the recent headlines suggesting the receding tension between the US and China.

On the contrary, the pre-NFP anxiety and firmer US Treasury yields, near the four-month high, underpin USD/CNH advances. Additionally, the firming of the Fed tapering woes, amid stronger early signals for the US Nonfarm Payrolls (NFP), up for publishing today, also favor the pair buyers. Furthermore, suspension of Fantasia bonds from trading challenges the market optimism.

Amid these plays, the US Dollar Index (DXY) picks up bids tracking the US 10-year Treasury yields, up 1.8 basis points to 1.59% by the press time. Further, Wall Street marked another positive day by the end of Thursday and S&P 500 Futures follow suit at the latest.

As USD/CNH traders struggle for clear direction, the US jobs report will be important to watch. Also, developments concerning the Sino-American ties and Fed tapering woes shouldn’t be missed as well.

Read: US Nonfarm Payrolls September Preview: How far will markets go when the Fed tapers?

Technical analysis

Multiple failures to cross the 100-DMA on a daily closing basis, around 6.4550 by the press time, keep USD/CNH bears directed towards a three-week-old support line near 6.4365.

Additional important levels

Overview
Today last price	6.4516
Today Daily Change	-0.0014
Today Daily Change %	-0.02%
Today daily open	6.453

Trends
Daily SMA20	6.4562
Daily SMA50	6.4645
Daily SMA100	6.4544
Daily SMA200	6.4693

Levels
Previous Daily High	6.4572
Previous Daily Low	6.4478
Previous Weekly High	6.4798
Previous Weekly Low	6.4284
Previous Monthly High	6.488
Previous Monthly Low	6.4244
Daily Fibonacci 38.2%	6.4514
Daily Fibonacci 61.8%	6.4537
Daily Pivot Point S1	6.4482
Daily Pivot Point S2	6.4433
Daily Pivot Point S3	6.4388
Daily Pivot Point R1	6.4576
Daily Pivot Point R2	6.4621
Daily Pivot Point R3	6.467

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.