USD/CNH hits 6-week high on US-China tussle

USD/CNH jumps to the highest level since March 20.
Markets offer Yuan as the US steps up anti-China rhetoric.

Omkar Godbole FXStreet Contributor

The offshore Yuan (CNH) is flashing red with the US ratcheting up anti-China rhetoric to shift responsibility for the COVID-19 crisis.

The USD/CNH pair rose to 7.1557 early Monday, the highest level since March 20, when the pair hit a high of 7.1622. At press time, the spot is trading near 7.1380, representing modest gains on the day.

While the US intelligence on Sunday accused China of hiding the severity of the coronavirus crisis to stock up medical supplies, the Secretary of State Mike Pompeo said that that country was responsible for the pandemic.

Further, President Trump said a few minutes before press time that tariffs would be an "ultimate punishment" on China.

China has responded to the allegations by stating that Secretary Pompeo's anti-China bluff strategy reveals an all-or-nothing mentality to fool US voters. China's Global Times said, “the truth is that Pompeo does not have any evidence, and during Sunday's interview, he was bluffing.”

Political experts, however, believe the Trump administration would continue to step up its anti-China rhetoric while heading into Presidential Elections in an attempt to deflect criticism at home.

The number of coronavirus-related deaths in the US reached 66,369 as of Saturday night, with total infections at 1,132,539, according to the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University.

Technical levels

USD/CNH

Overview
Today last price	7.1354
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	7.1354

Trends
Daily SMA20	7.0818
Daily SMA50	7.0558
Daily SMA100	7.0112
Daily SMA200	7.0394

Levels
Previous Daily High	7.1404
Previous Daily Low	7.0774
Previous Weekly High	7.1404
Previous Weekly Low	7.0526
Previous Monthly High	7.1424
Previous Monthly Low	7.037
Daily Fibonacci 38.2%	7.1163
Daily Fibonacci 61.8%	7.1014
Daily Pivot Point S1	7.0951
Daily Pivot Point S2	7.0547
Daily Pivot Point S3	7.0321
Daily Pivot Point R1	7.1581
Daily Pivot Point R2	7.1807
Daily Pivot Point R3	7.2211

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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