- Yuan trades 0.27% lower on the week as dollar draws month-end bids.
- USD/CNY looks oversold as per weekly chart indicators.
- The Chinese yuan (CNY) is currently trading at 6.5785 per US dollar, representing a 0.27% drop for the week.
If these losses are held through Friday's close, it will be the biggest weekly decline since the third week of September.
China's industrial profits rose for the sixth straight month in October, and at the fastest rate in nine years, data released early Friday showed. So far, however, the data has failed to put a bid under the yuan. The greenback is reportedly benefitting from the month-end corporate demand for the US dollar.
Besides, the USD/CNY pair looks oversold, according to the below-30 reading on the 14-week Relative Strength Index. As such, a corrective bounce could be seen in the next couple of weeks.
Weekly chart
Trend: Oversold
Technical levels
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.
Latest Forex News
Editors’ Picks
AUD/USD keeping its head above 21DMA at 0.7673 for now
AUD/USD saw downside during Monday’s Asia Pacific and early European session, dropping momentarily as low as 0.7660. The pair broke below an uptrend linking the 28 December 2020 high with the 4, 11 and 15 January lows.
EUR/USD is nearing the 1.2000 psychological threshold
EUR/USD corrective decline continues, with the pair approaching a critical psychological support level. Investors await Biden’s inauguration and ECB’s monetary policy decision.
XAU/USD fades recovery moves below $1,850, awaits fresh clues
Gold eases from the top of an immediate $10 trading range while declining to $1,837 at the start of Tuesday’s Asian session. The yellow metal took a U-turn from the lowest since December 01 the previous day as the US dollar stepped back after refreshing the one-month high.
Stellar awaits a massive breakout but remains inside a no-trade zone
XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst.
US Dollar Index: Immediately to the upside comes 91.00
DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.