USD/CNY strengthens, Hong Kong dollar at 10-month low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Chinese Yuan slipped today, taking the USD/CNY pair higher to 6.586, while the Hong Kong dollar fell to 10-month low.

    USD/CNY at three-day high

    The pair rose to a three-day high after the currency fell sharply in the offshore market. The offshore Yuan has wiped out part of the gains made earlier this week on account of the PBOC intervention. The Yuan was fixed at 6.5616 Thursday against the U.S. dollar, stronger than the previous close and previous day’s fix.

    HKD dropped on de-peg speculation

    The Hong Kong dollar sank by the most in four years to a 10-month low of $7.7738 on increased speculation that a 32-year-old peg to the greenback will end.

    USD/CNY Technical Levels

    At 6.5847, the immediate resistance is seen at 6.6042 (latest high), above which the pair could test 6.61 (Oct 2010 low). On the other hand, a break below 6.5809 (Jan 12 high) would expose support at 6.5653 (61.8% of Dec 2008 high-Jan 2014 low).
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