USD/CNY gaps higher, hits 13-month high

USD/CNY gapped higher to a hit a 13-month high of 6.8246.
PBOC set the Yuan reference rate at the weakest since July 11, 2017.

Omkar Godbole FXStreet Contributor

Currently, the USD/CNY pair is trading at 6.8165, having hit a high of 6.8246 earlier today - its highest level since June 27, 2017.

The Yuan gapped lower as the People's Bank of China (PBOC) fixed the midpoint rate at 6.7891, the weakest daily fix since July 11, 2017.

The fresh multi-month low in CNY could hurt the Aussie dollar, base metals, and Asian currencies. More importantly, the US President Trump may step up criticism of the Fed's interest rate hikes and the resulting USD strength.

The faster the CNY slides, the more likely a full-blown Sino-US currency war becomes.

USD/CNY Technical Levels

Resistance: 6.844 (June 27, 2017 high), 6.8730 (April 13 low).

Support: 6.8102 (session low), 6.7962 (previous day's high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M		Overbought	High
1H	Bullish	Neutral	Shrinking
4H		Neutral	Low
1D		Overbought	Expanding
1W		Overbought	High
Updated Jul 24, 01:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD holds steady near 0.7200 amid escalating US-Iran tensions

AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues. Hawkish RBA expectations continue to act as a tailwind for the Aussie. Meanwhile, the upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpins the safe-haven US Dollar and caps the currency pair.

USD/JPY hovers around 156.00 as more hawkish BoJ bets cap gains

USD/JPY holds steady above 156.00 on Monday as the US Dollar draws support from escalating US-Iran tensions and rising Fed rate-hike bets, bolstered by Friday's upbeat NFP report. Moreover, concerns over Japan’s fiscal outlook keep the Japanese Yen on the back foot and support the currency pair, though more hawkish BoJ expectations and a suspected intervention cap the upside.

Gold falls below $4,400 as strong US jobs data raise the prospects for Fed rate hike

Gold price tumbles to near $4,395 during the Asian session on Monday. The precious metal extends the decline as robust US employment data boost US Federal Reserve (Fed) rate hike bets. The US Nonfarm Payrolls (NFP) climbed by 162K in August, the US Bureau of Labor Statistics (BLS) revealed on Friday.

The week ahead: Dollar at a crossroads as CPI and ECB take centre stage

With the summer finally over, investors returned with a strong appetite for action. Following last week’s strong performance, the US dollar has taken a back seat so far this week, as oil, the yen and sovereign bond yields monopolized market interest.

CFTC report: Oil rebound offsets broader positioning retreat

The week in one sentence: Speculative positioning became more defensive in the week ending September 1. Yen short positioning recorded the largest deterioration, while Gold length also retreated. Oil buying returned alongside stronger prices, and Canadian Dollar and Euro positioning improved, although Euro flows diverged from weaker spot prices.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.