- USD/CNH defies the previous day’s upbeat performance while magnifying losses from 7.0016.
- China’s July month official PMIs print better than forecast readings.
- Risk aversion continues with the surge in virus numbers, the US dollar index refreshes 26.5-month low.
USD/CNH sellers attack 6.9900, down 0.15% on a day, during the early Friday. The dropped heavily after China’s official PMI data flashed welcome figures for July. In doing so, the sellers ignore rising fears of the coronavirus (COVID-19) and broad risk-off moves. The underlying reason could be traced from the US dollar’s broad weakness.
China’s NBS Manufacturing PMI surged past-50.7 forecast and 50.9 prior to 51.1 while Non-Manufacturing PMI rose beyond 51.2 but stayed a bit lower than 54.4 previous as flashing 54.2 level for July.
With the upbeat data from China standing in contrast to the sluggish US statistics, bears regain controls. On Thursday, the US second quarter (Q2) GDP dropped to -32.9% versus -34.1% expected and -5% prior. Also posing challenges to America is the recent surge in the pandemic numbers and a lack of agreement over the phase 4 of fiscal package.
While portraying the downbeat conditions at home, the US dollar index (DXY) slumped to the fresh lows since May 2018. The greenback gauge takes rounds to 92.65, down 0.31% intraday, before refreshing the multi-day bottom with 92.60 figures.
On the other hand, rising virus numbers from Texas and Xinjiang have been weighing on the market sentiment together with the uncertainty surrounding the phase 4 fiscal package from the US.
As a result, the US 10-year Treasury yields remain pressured near 0.536%, the lowest since March whereas stocks in Asia-Pacific, except for China, mark losses by the press time.
Moving on, traders should keep eyes on the virus updates and any clues suggesting the agreement on the US aid package for fresh impulse. Additionally, US Chicago Purchasing Managers’ Index and the Michigan Consumer Sentiment Index can also direct the market players.
The monthly low around 6.9640 remains on the bears’ radars unless the quote rises past-7.0155 level comprising a falling trend line from June 04.
Additional important levels
|Today last price||6.9886|
|Today Daily Change||-0.0132|
|Today Daily Change %||-0.19%|
|Today daily open||7.0018|
|Previous Daily High||7.0172|
|Previous Daily Low||6.9916|
|Previous Weekly High||7.0304|
|Previous Weekly Low||6.9642|
|Previous Monthly High||7.1518|
|Previous Monthly Low||7.04|
|Daily Fibonacci 38.2%||7.0075|
|Daily Fibonacci 61.8%||7.0014|
|Daily Pivot Point S1||6.9899|
|Daily Pivot Point S2||6.978|
|Daily Pivot Point S3||6.9643|
|Daily Pivot Point R1||7.0155|
|Daily Pivot Point R2||7.0292|
|Daily Pivot Point R3||7.0411|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.