- USD/CNH remains on the bids after China’s Industrial Profits data.
- Recent trade headlines have been positive but fall short to counter broad USD strength.
Another reading of mixed data from China propels the USD/CNH pair to 7.1290 during the initial trading session on Friday.
China’s August month Industrial Profits declined -2.0% versus +2.6% prior on YoY while staying unchanged to -1.7% on a monthly basis. Earlier during the month, activity numbers and inflation data have also troubled the traders.
Alike data, trade headlines have also failed to provide any clear direction as the US-China goodwill gestures confront the latest news that the US refrains to renew licenses to do business with China’s Huawei and the Chinese delegation, led by Vice Premier Liu He, will visit Washington on October 10-11 to renew trade talks.
Investors could seek clues to the US Dollar’s (USD) overall strength amid upbeat signals from the Fed policymakers and global geopolitical tension making it’s the cleanest amongst the dirty lot.
Also affecting the move is the news that the People’s Bank of China (PBOC) gauges demands for 14, 28 & 63-day reverse repos while injecting 30 billion Chinese Yuan (CNY) via 14-day reverse repos.
Looking forward, no major data is up for publishing during the Asian session, making it solely dependent on trade/political headlines. Though, active calendar during the US session, mainly including data from the US, will entertain momentum traders afterward.
Technical Analysis
Unless breaking 7.1400/10 area including highs marked on August 06/23 and August 29/30 lows, bulls are less likely to aim for 7.1620 and 7.1840 resistances. On the flip side, pair’s break below 21-day simple moving average (DMA) level of 7.1154 highlights two-week-old rising trend-line and 23.6% Fibonacci retracement level of June-September upside, around 7.1075/90, as key support.
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.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.