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.

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