- Offshore yuan has surrendered early gains, possibly due to weak data - China industrial profits tanked in the Jan-Feb period.
- US 10-year treasury yield is flashing early sign of bull reversal. An uptick in the benchmark yield could put a bid under the greenback.
USD/CNH is currently trading largely unchanged on the day at 6.7227, having hit a low of 6.7157 earlier today.
The CNH (offshore yuan exchange rate) found offers after data released an hour ago showed China's industrial profits tanked 14 percent year-on-year in the January-February period, the biggest drop since 2011.
The slide in industrial profits is hardly surprising, as the economy has slowed down considerably over the last few quarters, courtesy of the Sino-US trade tensions.
Looking forward, USD/CNH could turn positive on the day and my revisit the recent high of 6.7310 if the US 10-year treasury yield rises, as suggested by yesterday's bullish inside day reversal candle. As of writing, the benchmark yield is trading at 2.42 percent.
- R3 6.7467
- R2 6.7355
- R1 6.7294
- PP 6.7182
- S1 6.7121
- S2 6.7009
- S3 6.6948
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.