- USD/CNH reverses from intraday high following the key activity data for June.
- China’s NBS Manufacturing PMI, Non-Manufacturing PMI cross market consensus but stayed below priors.
- Sentiment remains indecisive with upbeat stock futures and lacklustre Treasury yields.
- US-China tensions, covid headlines and Fedspeak may entertain traders ahead of US ADP Employment Change.
USD/CNH fails to keep the previous day’s bounce off weekly low, reverses from intraday high, during early Wednesday. In doing so, the Chinese currency (CNH) pair reacts to the mixed official PMI data for June amid subdued markets.
China’s NBS Manufacturing PMI rose past 50.8 forecast to 50.9 but lagged behind the 51.00 prior. On the same line, Non-Manufacturing PMI also stayed below 55.2 prior despite crossing 52.7 market consensus with 53.5 readings for June.
Although the coronavirus (COVID-19) joined mixed Fedspeak to tease USD/CNH bulls earlier in the day, hopes of China’s fast recovery than the US seems to have recalled the bears. Also, chatters that the People’s Bank of China (PBOC) will lead the Fed in monetary policy adjustments, signaled by Bloomberg, add to the pair’s weakness.
While the covid conditions seem to improve in Beijing, other key economies in the Asia-Pacific region, including Australia, highlight the fears of the Delta variant of the coronavirus. On the other hand, the Fed policymakers remain hesitant to accept the inflation woes, needless to mention the push for tapering and rate hike, which in turn tests the greenback buyers. Additionally, the latest sluggish moves of the US Treasury yields offer an extra barrier to the US dollar strength and weigh on the USD/CNH prices.
It should, however, be noted that the equities are mildly positive and have been teasing records since in recent days, which in turn reduces the US dollar’s safe-haven demand and may keep USD/CNH bears hopeful.
Even so, today’s US ADP Employment Change for June, expected 600K versus 978K prior, will be the key to watch for fresh impulse ahead of Friday’s Nonfarm Payrolls.
USD/CNH failed to pierce the 100-day SMA, around 6.4700, during Tuesday’s corrective pullback, which in turn directs sellers toward the weekly low near 6.4520.
Additional important levels
|Today last price||6.4648|
|Today Daily Change||-0.0004|
|Today Daily Change %||-0.01%|
|Today daily open||6.4652|
|Previous Daily High||6.4722|
|Previous Daily Low||6.457|
|Previous Weekly High||6.4948|
|Previous Weekly Low||6.452|
|Previous Monthly High||6.493|
|Previous Monthly Low||6.3524|
|Daily Fibonacci 38.2%||6.4664|
|Daily Fibonacci 61.8%||6.4629|
|Daily Pivot Point S1||6.4574|
|Daily Pivot Point S2||6.4496|
|Daily Pivot Point S3||6.4422|
|Daily Pivot Point R1||6.4726|
|Daily Pivot Point R2||6.48|
|Daily Pivot Point R3||6.4878|
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.