USD/CNY better offered on USD selling ahead of Trump

Dhwani Mehta FXStreet

The Chinese currency manages to keep an edge over its American dollar on the final trading day of the week, as the corporate demand for greenback remains on the back foot ahead of Trump’s inauguration at the Capitol Hill.

Also, adding to the offered tone in USD/CNY, Fed Chair Yellen’s comments signaled a less hawkish stance on the monetary policy stance going forward, which weighed heavily on the US dollar across the board. While upbeat China’s Q4 GDP data also collaborated to minor-strength seen behind the Chinese Yuan.

Meanwhile, the PBOC set the first USD/CNY reference rate today at 6.8693 versus Thursday’s 6.8568, i.e., 125 basis points or 0.18% weaker.

The USD/CNY pair peeks into negative territory near 6.8700 levels in late-Asia, reversing a downward spike to 6.8611.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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