USD/CNH rebounds from 7.3300 despite an upbeat Caixin Manufacturing PMI

USD/CNH has witnessed a V-shape reversal at around 7.3300.
Caixin Manufacturing PMI has landed higher at 49.2 vs. the expectations of 49.0.
The Fed is set to hike rates by 75 bps as inflationary pressures have not slowed down yet.

Sagar Dua FXStreet

The USD/CNH pair has displayed a V-shape reversal after dropping to near 7.3300 in the Tokyo session. The asset has witnessed recovery despite the release of upbeat Caixin Manufacturing PMI data. The economic data has landed higher at 49.2 vs. the projections of 49.0 and the prior release of 48.1.

Earlier, China’s official Manufacturing PMI landed lower at 49.2 vs. the projections of 50.0 and the prior release of 50.1, reported by the National Bureau of Statistics (NBS). Also, the Non-Manufacturing PMI had been recorded significantly lower at 48.7 against the expectations of 51.9 and the former release of 50.6.

Meanwhile, the US dollar index (DXY) has slipped sharply in Tokyo as the risk-on impulse has rebounded firmly. The DXY has dropped sharply to near 111.36. The S&P500 futures have rebound strongly after a bearish Monday amid overall optimism in the quarterly result season.

The returns on US government bonds have fallen despite accelerating hawkish Federal Reserve (Fed) bets. The 10-year US Treasury yields have dropped to 4.04%, 0.90%, below its previous close, at the time of writing.

This week, the major trigger will be the interest rate decision by the Fed. The US central bank is expected to hike the interest rates by 75 basis points (bps) for the fourth time as the inflationary pressures have not displayed signs of exhaustion yet. However, consumer spending has trimmed in the third quarter to 1.4% from the prior expansion of 2.0%, which may weigh on the inflation rate.

USD/CNH

Overview
Today last price	7.3338
Today Daily Change	-0.0026
Today Daily Change %	-0.04
Today daily open	7.3364

Trends
Daily SMA20	7.205
Daily SMA50	7.08
Daily SMA100	6.9103
Daily SMA200	6.6971

Levels
Previous Daily High	7.3392
Previous Daily Low	7.2688
Previous Weekly High	7.3748
Previous Weekly Low	7.1658
Previous Monthly High	7.3748
Previous Monthly Low	7.0126
Daily Fibonacci 38.2%	7.3123
Daily Fibonacci 61.8%	7.2957
Daily Pivot Point S1	7.2904
Daily Pivot Point S2	7.2443
Daily Pivot Point S3	7.2199
Daily Pivot Point R1	7.3609
Daily Pivot Point R2	7.3853
Daily Pivot Point R3	7.4314

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.

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