USD/CNY: Yuan rebounds on stronger Yuan fix, upbeat China trade

Dhwani Mehta FXStreet

The Chinese currency staged a solid recovery and now trades better bid versus its US counterpart, after yesterday’s USD/CNY rally amid reports that the Chinese forex reserves dropped to the lowest levels since March 2011.

The Yuan firmed today per dollar on the back of a stronger Yuan fix and limited demand for the US currency by the corporate world. Moreover, upbeat Chinese trade data also provided some support to the local currency.. China's Nov trade data (CNY terms): Below estimates, but both exports & imports jump

The PBOC set the yuan reference point against the US dollar at 6.8731, 77 basis points or 0.12% stronger than Wednesday’s fix of 6.8808.

Meanwhile, the USD/CNY pair traded almost flat at 6.8797 at mid-day, 9 basis points lower than previous close.

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.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.