USD/CNY: Chinese yuan hits highest since June 2018

Yuan extends the 2020 rally to hit a 31-month high.
The Chinese currency has gained over 1% in the first two trading days of the year.

Omkar Godbole FXStreet Contributor

The Chinese yuan (CNY) has begun the new year with a bang, rising to fresh multi-year highs against the US dollar.

At press time, the yuan is trading at 6.4311, the highest level since June 2018. The currency has gained nearly 1.5% in the first two trading days of the year, having rallied by 6.27% in 2020.

The Chinese unit's ascent seems to have accelerated with the penetration of last year's resistance of 6.52.

The currency continues to benefit from China's economic recovery, the twin US fiscal deficits, and expectations that the Federal Reserve would keep the interest rates low despite hopes for coronavirus vaccine-led recovery.

Further gains may be seen if the US Democrats sweep Georgia elections on Tuesday, taking control of the Senate. That outcome is expected to pave the way for additional fiscal stimulus.

Technical levels

USD/CNY

Overview
Today last price	6.4322
Today Daily Change	-0.0294
Today Daily Change %	-0.45
Today daily open	6.4616

Trends
Daily SMA20	6.5343
Daily SMA50	6.5788
Daily SMA100	6.6899
Daily SMA200	6.8716

Levels
Previous Daily High	6.533
Previous Daily Low	6.4587
Previous Weekly High	6.5561
Previous Weekly Low	6.5156
Previous Monthly High	6.5867
Previous Monthly Low	6.5156
Daily Fibonacci 38.2%	6.4871
Daily Fibonacci 61.8%	6.5046
Daily Pivot Point S1	6.4359
Daily Pivot Point S2	6.4101
Daily Pivot Point S3	6.3616
Daily Pivot Point R1	6.5102
Daily Pivot Point R2	6.5587
Daily Pivot Point R3	6.5845

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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