USD/CNH probes 7.0300 as Chinese traders weigh trade data, shift in risk tone

USD/CNH stops the previous three days’ declines.
Disappointment from China data, increasing uncertainty ahead of US tariffs and signs of protests in Hong Kong all play their roles.
The risk tone stays sluggish ahead of the key week.

Anil Panchal FXStreet

USD/CNH takes the bids to 7.0300 as Chinese markets open for Monday’s trading. Traders might have reacted to the weekend data from China while trade pessimism and negative headlines from Hong Kong could have acted as additional forces.

China’s November month Exports fell unexpectedly to -1.1% versus +1.0% forecast whereas Imports rose, +0.3% against -6.4% prior, for the first time since April. Further, Trade Balance of $38.73B lagged behind $46.3B market consensus.

Even so, China’s Global Times shrugs of the trade war with the United States (US) to be the reason to worry. Also contributing to the risk-off was the Financial Times (FT) report suggesting Beijing’s order to all government offices to stop using foreign personal computers (PCs) and software within a time span of three years. Additionally, Bloomberg reported the news of the biggest pro-democracy protest in months on Sunday while anticipating more unrest to follow in 2020.

Given the market’s uncertain times ahead of the US decision on December 15 tariffs on the Chinese goods, such downbeat headlines weigh on risk tone and stop the US 10-year treasury yields around 1.84%, ignoring the Friday’s run-up.

Investors will now keep eyes on trade headlines and the US reaction to the Hong Kong protests, not to forget China’s restrictions on PC and software usage, for fresh impulse.

Technical Analysis

A four-week-old rising trend line near 7.0220 limits the pair’s immediate declines towards early-November lows near 6.9920. Alternatively, November 11 top around 7.0535 can limit the pair’s short-term upside.

additional important levels

Overview
Today last price	7.0302
Today Daily Change	0.0085
Today Daily Change %	0.12%
Today daily open	7.0217

Trends
Daily SMA20	7.0302
Daily SMA50	7.0583
Daily SMA100	7.0613
Daily SMA200	6.9391

Levels
Previous Daily High	7.0498
Previous Daily Low	7.0215
Previous Weekly High	7.0879
Previous Weekly Low	7.0215
Previous Monthly High	7.0536
Previous Monthly Low	6.9524
Daily Fibonacci 38.2%	7.0323
Daily Fibonacci 61.8%	7.039
Daily Pivot Point S1	7.0122
Daily Pivot Point S2	7.0027
Daily Pivot Point S3	6.9838
Daily Pivot Point R1	7.0405
Daily Pivot Point R2	7.0594
Daily Pivot Point R3	7.0689

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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