- USD/CNH hovers around 7.3125 following the Chinese data.
- US Conference Board (CB) Consumer Confidence rose to 103.0 in September from 108.7 in August.
- China’s Industrial Profits rose by 17.2% from a year earlier.
- The US Core Personal Consumption Expenditure (PCE) Price Index data will be in the spotlight this week.
The USD/CNH pair posts modest gains around 7.3125 during the Asian session on Wednesday. The higher-for-longer rate narrative in the US may undermine risk sentiments and lift the Greenback against its rivals. Market players await the highly-anticipated US Core Personal Consumption Expenditure (PCE) Price Index data on Friday for fresh impetus. The annual figure is expected to decline from 4.2% to 3.9%.
The Federal Reserve (Fed) decided to hold interest rate unchanged in the 5.25% to 5.50% range in its September meeting last week. Apart from this, Fed officials still expect further rate rises later this year. Minneapolis Federal Reserve Bank President, Neel Kashkari stated on Tuesday that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. The hawkish stance from the Federal Reserve (Fed) boosts the USD against the CNH.
About the data, economic data on Tuesday revealed that US Conference Board (CB) Consumer Confidence rose to 103.0 in September from 108.7 in August. The figures reached their lowest level in four months, reflecting the impact of rising interest rates and political uncertainty. In August, Building Permits came in at 1.541M from the previous month's figure of 1.44M. The House Price Index for July increased to 0.8% MoM from 0.4% in the prior reading, exceeding the consensus estimate of 0.5%. August New Home Sales decreased -8.7% from July's rise of 8%.
On the other hand, data released by the National Bureau of Statistics (NBS) showed on Wednesday that China’s Industrial Profits rose by 17.2% from a year earlier. This figure reversed the trend after declining in the past five months. Furthermore, the People's Bank of China (PBOC) stated on Wednesday that the central bank will step up policy adjustments and implement monetary policy in a precise and forceful manner in order to support the economy. Any evidence of China data improvement and PBoC warning could turn into a pullback in USD/CNH and act as a headwind for the pair.
Looking ahead, traders will take cues from the US Gross Domestic Product (GDP) Annualized for the second quarter on Thursday and the Core Personal Consumption Expenditure (PCE) Price Index will be released on Friday. These figures could give a clear direction to the USD/CNH pair.
|Today last price||7.3112|
|Today Daily Change||0.0010|
|Today Daily Change %||0.01|
|Today daily open||7.3102|
|Previous Daily High||7.3172|
|Previous Daily Low||7.3058|
|Previous Weekly High||7.3216|
|Previous Weekly Low||7.2718|
|Previous Monthly High||7.3496|
|Previous Monthly Low||7.1452|
|Daily Fibonacci 38.2%||7.3101|
|Daily Fibonacci 61.8%||7.3129|
|Daily Pivot Point S1||7.3048|
|Daily Pivot Point S2||7.2995|
|Daily Pivot Point S3||7.2933|
|Daily Pivot Point R1||7.3163|
|Daily Pivot Point R2||7.3225|
|Daily Pivot Point R3||7.3278|
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.