USD/CNH hovers above 6.3600 on China’s mixed covid updates, focus on Xi-Biden call over Ukraine

USD/CNH dribbles after bouncing off one-week low, indecisive on weekly as well.
China witnesses increase in covid numbers after the previous declines, allows factory production in Shenzen.
Mixed concerns over Ukraine-Russia talks join markets anxiety ahead of Xi-Biden call, light calendar to restrict immediate moves.

Anil Panchal FXStreet

USD/CNH remains directionless around 6.3650 amid Friday’s sluggish Asian session.

In doing so, the offshore Chinese yuan (CNH) pair struggles to justify covid-linked optimism at home as indecision for the Ukraine-Russia crisis intensifies ahead of today’s phone call between US President Joe Biden and his Chinese counterpart Xi Jinping.

As per the latest virus updates from China, conveyed by Reuters, “Mainland China reported 2,416 new confirmed coronavirus cases on March 17, the country's national health authority said on Friday, compared with 1,317 a day earlier.” It’s worth noting that the COVID-19 daily infections were easing in the last two days from the record top. On the contrary, reports of factory production restart in five districts of Shenzen keep buyers hopeful.

Elsewhere, China’s Foreign Ministry confirmed that China and Russia met on March 17 to discuss security cooperation. Beijing previously denied the US allegations of readiness to help Moscow in the battle with Ukraine. Hence, the issue will be important and can add to the USD/RUB upside should it produce negative headlines during today’s call between US President Joe Biden and his Chinese counterpart Xi Jinping.

It should be noted that looming fears of Russia’s default and the continuation of the peace talks between Moscow and Kyiv keep traders confused amid a light calendar day.

Looking forward, updates over the Russia-Ukraine stand-off will be the key for near-term directions.

Technical analysis

A daily closing beyond the 100-DMA level surrounding 6.3650 becomes necessary to confirm further upside targeting the late January tops surrounding 6.3865.

Additional important levels

Overview
Today last price	6.3636
Today Daily Change	-0.0008
Today Daily Change %	-0.01%
Today daily open	6.3644

Trends
Daily SMA20	6.3342
Daily SMA50	6.348
Daily SMA100	6.365
Daily SMA200	6.4113

Levels
Previous Daily High	6.369
Previous Daily Low	6.3554
Previous Weekly High	6.3644
Previous Weekly Low	6.3122
Previous Monthly High	6.3774
Previous Monthly Low	6.306
Daily Fibonacci 38.2%	6.3639
Daily Fibonacci 61.8%	6.3606
Daily Pivot Point S1	6.3569
Daily Pivot Point S2	6.3494
Daily Pivot Point S3	6.3433
Daily Pivot Point R1	6.3705
Daily Pivot Point R2	6.3766
Daily Pivot Point R3	6.3841

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.

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