USD/CNH slips to lowest since Sept. 21

USD/CNH drops to a 10-day low of 6.7580.
Dollar draws offers as stocks rise on reports of progress in US stimulus talks.

Omkar Godbole FXStreet Contributor

Dollar selling is gathering pace during Thursday's Asian trading hours and pushing USD/CNH lower in the 6.75 neighborhood, a level last seen on Sept. 21.

Progress in US stimulus talks weigh over USD

The safe-haven US dollar is facing selling pressure, as the Asian stocks are cheering signs of progress in the US fiscal stimulus talks.

According to BloombergQuint, Treasury Secretary Steven Mnuchin said that he and House Speaker Nancy Pelosi made a lot of progress in many areas, and the House speaker said talks with the Treasury secretary would continue.

That said, the two parties still remain far apart in their talks, as warned by Senate Majority Leader Mitch McConnell. Besides, the risk of delay in US election results looms large.

As such, markets remain vulnerable to risk aversion and sudden reversal higher in the US dollar.

At press time, USD/CNH is trading at 6.7580, down 0.36% on the day. The pair fell nearly 1% in September, confirming a fourth-straight monthly drop. The offshore yuan reached a 16-month high of 6.7423 per US dollar on Sept. 16.

Technical levels

1. R3 6.8568
2. R2 6.8407
3. R1 6.8126
PP 6.7965
1. S1 6.7684
2. S2 6.7523
3. S3 6.7242

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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