USD/CNH refreshes 18-month low after upbeat China Caixin Services PMI

USD/CNH stays heavy near the lowest levels since April 22, 2019.
China’s Caixin Services rose past-50.7 forecast to 54.8 in September.
China returns to trading after Golden Week holidays, joins WHO’s COVID-19 vaccine program.
Trump’s comments on Fox interview, stimulus and virus news will be the key.

Anil Panchal FXStreet

USD/CNH remains on the back foot around 6.7100, down 0.42% intraday, during the early Friday's trading. The pair recently paid a little heed to the September month’s Caixin Services PMI data as it bounced off the intraday low after the upbeat releases to 54.8.

Read: China's Caixin 54.8 vs 54.0 in August, recovery extends

Other than the Chinese data, Beijing’s success in joining the World Health Organization’s (WHO) coronavirus (COVID-19) vaccine program, despite global ire, offers additional strength to the Chinese currency. Furthermore, stocks in China are also cheering the current market optimism, backed by stimulus hopes, after returning to bourses following the Golden Week holidays and help the USD/CNH bears as well.

The global market mood cheers US President Donald Trump’s another shift, as far as the COVID-19 aid package is concerned. After initially rejecting the large-scale help, the Republican leader is said to consider big fiscal support, per the Bloomberg. Also favoring the markets could be Trump’s health recovery and readiness to take out a rally before Saturday, as per his comments on the latest Fox interview.

Amid all these plays, S&P 500 Futures gain around half a percent whereas stocks in Asia-Pacific and the US 10-year Treasury yields are also portraying the market optimism.

Looking forward, traders will keep eyes on the stimulus headlines for fresh impetus. Vaccine news and US-China trade updates may also entertain the USD/CNH players.

Technical analysis

A three-week-old falling trend line around 6.7030 may offer immediate support ahead of the 6.7000 and the year 2019 bottom surrounding 6.6700. Meanwhile, buyers will look for a clear break of the mid-September low, close to 6.7420, before taking fresh entries.

Additional important levels

Overview
Today last price	6.7132
Today Daily Change	-0.0254
Today Daily Change %	-0.38%
Today daily open	6.7386

Trends
Daily SMA20	6.7806
Daily SMA50	6.8548
Daily SMA100	6.957
Daily SMA200	6.9929

Levels
Previous Daily High	6.748
Previous Daily Low	6.7252
Previous Weekly High	6.8346
Previous Weekly Low	6.7306
Previous Monthly High	6.861
Previous Monthly Low	6.7422
Daily Fibonacci 38.2%	6.7393
Daily Fibonacci 61.8%	6.7339
Daily Pivot Point S1	6.7265
Daily Pivot Point S2	6.7144
Daily Pivot Point S3	6.7036
Daily Pivot Point R1	6.7494
Daily Pivot Point R2	6.7602
Daily Pivot Point R3	6.7723

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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