Forex - China Flows: Offshore yuan holds on to gains amid optimism coronavirus may have peaked


 03:48 (GMT) 12 Feb

  [Forex Flows]

Sample Premium Content
China Flows: Offshore yuan holds on to gains amid optimism coronavirus may have peaked (0101-QJKD-C01)

USD/CNH extended its fall for a third day on Wednesday as markets are hopeful that the coronavirus outbreak may have peaked in China. As of late February 11, China's confirmed coronavirus cases have increased to 44,653 with death toll totalling 1,113. However, the numbers of new cases have continued to show smaller daily increases over the past few days, both in Hubei and across the nation. Pair was last seen trading at 6.9628 after it dipped to fresh lows of 6.9604 on Wednesday morning from 6.9700 levels overnight. A return of risk-off sentiment may see pair retains an upside bias. Resistance level is now seen at 7.0227. Further market optimism could see pair moves to next support level at 6.9518.

PBoC fixed midpoint at 6.9718 on Wednesday vs. previous close of 6.9660. USD/CNY gapped higher to open at 6.9686 on Wednesday. Pair touched an intra-day high of 6.9696 before it retreated lower to 6.9627 at last check. Market focus remains on more measures to support economic growth. As risk aversion wanes for now, we shift our attention to the 7.0000 handle should risk-off sentiment return. 1Y NDFs extended its drop on Wednesday to 7.0365 at last look. SHCOMP was last seen up 0.21%


CurrenciesCountriesMarket Bulletins

Latest Currency Analysis

Available to subscribers only
Order Now