USD/CNH is extending three-day losing streak

The offshore yuan is pushing higher against the greenback, having posted gains in the last three trading days.
The PBOC set the yuan reference rate at 6-month highs.

Omkar Godbole FXStreet Contributor

The USD/CNH pair is currently trading at 6.7425 - down 0.25 percent on the day.

The Chinese currency picked up a bid seemingly after the People's Bank of China (PBOC) set the daily reference rate at 6.7560 - the strongest fix since July 19, 2018.

Notably, the CNH posted gains for the third straight day on Friday and jumped more than 1 percent last week, triggering speculation that China may be allowing its currency to appreciate in order to clear the way for a trade deal.

Looking forward, the bid tone around the CNH will likely strengthen if the China trade data, due later today, shows a drop in the trade surplus with the US. Also, the Sino-US trade optimism and the dovish Fed expectations could keep the USD/CNH pair under pressure.

USD/CNH Technical Levels

USD/CNH

Overview:
    Today Last Price: 6.7436
    Today Daily change: -1.8e+2 pips
    Today Daily change %: -0.260%
    Today Daily Open: 6.7612
Trends:
    Previous Daily SMA20: 6.869
    Previous Daily SMA50: 6.8984
    Previous Daily SMA100: 6.8936
    Previous Daily SMA200: 6.719
Levels:
    Previous Daily High: 6.7956
    Previous Daily Low: 6.7376
    Previous Weekly High: 6.8687
    Previous Weekly Low: 6.7376
    Previous Monthly High: 6.9509
    Previous Monthly Low: 6.826
    Previous Daily Fibonacci 38.2%: 6.7598
    Previous Daily Fibonacci 61.8%: 6.7734
    Previous Daily Pivot Point S1: 6.734
    Previous Daily Pivot Point S2: 6.7069
    Previous Daily Pivot Point S3: 6.6762
    Previous Daily Pivot Point R1: 6.792
    Previous Daily Pivot Point R2: 6.8227
    Previous Daily Pivot Point R3: 6.8498

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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