USD/CNH rebounded from 6.9100 as Caixin Services PMI misses estimates marginally

USD/CNH has witnessed a recovery move to near 6.9200 after Caixin Services PMI failed to match estimates.
Caixin Services PMI has landed at 56.4, marginally lower than the estimates of 56.5 and the former release of 57.8.
Broadly, the USD Index is showing signs of volatility contraction ahead of the release of the US NFP data.

Sagar Dua FXStreet

The USD/CNH pair has shown a recovery move from 6.9100 amid the release of the downbeat Caixin Services PMI data (April). The economic data has landed at 56.4, marginally lower than the estimates of 56.5 and the former release of 57.8.

This week, the Caixin Manufacturing PMI also failed to stand on expectations. The Caixin Manufacturing PMI was released at 49.5, lower than the estimates of 50.3 and the former release of 50.0. Despite fiscal and monetary support the Chinese economy is struggling to remain on track of progress after dismantling pandemic controls.

This has raised concerns in the minds of investors over the pace of economic recovery in the Chinese economy. The economy is continuously facing pressure from the vulnerable real estate sector and subdued households' demand.

S&P500 futures have added significant gains in the Asian session indicating an improvement in market sentiment. Investors are digesting the US banking jitters and are focusing more on optimism infused by neutral guidance from the Federal Reserve (Fed).

The US Dollar Index (DXY) has corrected to near 101.23 in the Tokyo session. On a broader note, the USD Index is showing signs of volatility contraction ahead of the release of the United States Nonfarm Payrolls (NFP) data. Investors are anticipating a decline in the number of job additions in April, however, upbeat labor market data could fuel the need of additional interest rate hikes by the Fed despite hints of pause that have already been delivered.

USD/CNH

Overview
Today last price	6.9198
Today Daily Change	0.0048
Today Daily Change %	0.07
Today daily open	6.915

Trends
Daily SMA20	6.9055
Daily SMA50	6.9032
Daily SMA100	6.8751
Daily SMA200	6.9571

Levels
Previous Daily High	6.9282
Previous Daily Low	6.8962
Previous Weekly High	6.9508
Previous Weekly Low	6.891
Previous Monthly High	6.9508
Previous Monthly Low	6.8302
Daily Fibonacci 38.2%	6.9084
Daily Fibonacci 61.8%	6.916
Daily Pivot Point S1	6.8981
Daily Pivot Point S2	6.8812
Daily Pivot Point S3	6.8662
Daily Pivot Point R1	6.93
Daily Pivot Point R2	6.945
Daily Pivot Point R3	6.9619

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold extends losing spree as US bond yields hold ground

Gold maintains an offered tone heading into the European session, trading near the weekly low it touched earlier this Wednesday, with bears still awaiting a sustained break and acceptance below $4,100 before positioning for further losses. Inflation risks stemming from volatile oil prices underpin prospects for further policy tightening by the US Federal Reserve. Furthermore, a modest US Dollar bounce from a near three-week low is seen weighing on the bullion.

Zcash's bullish reversal eyes $1,698 peak on NU7 upgrade

Zcash (ZEC) shows signs of bullish recovery above $1,200 on Wednesday, following a 9% rebound the previous day linked to the upcoming NU7 upgrade. Blockworks released a Zcash holders report on Tuesday, highlighting steady network growth. The technical outlook for ZEC is bullish, with bulls eyeing an extended rally toward $1,698.

US – Midterm update: Pre-election tail risk scenarios

With two weeks until the US midterm elections on 3 November, early voting has already opened in more than 40 states. Prediction markets are broadly unchanged since we published our Midterm update, 13 October. The prediction market Polymarket continues to see Democrats winning both chambers as the most likely outcome, with a 62.5% probability.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.