OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CNY likely to be range bound in near-term – Westpac

According to Frances Cheung, head of macro strategy of Asia for Westpac, USD/CNY pair is likely to be range bound in the coming weeks, with 6.8039 being the next support and 6.9771 the next resistance.

Key Quotes

“The MLF (medium-term lending facility) maturity schedule remains heavy in the coming months. An RRR cut to release some liquidity by year-end is still possible. If that does not materialize, we will be watching out for January, before the Chinese New Year.”

“We expect a total of 200bp RRR cut through end-2019. This is likely to keep CNY rates and yields soft  and may exert a mild upward pressure on USD/CNY. That said, USD/CNY is likely to be capped below 7.0, as the Chinese authorities have shown willingness to contain RMB weakness, while inflows versus outflows pressure appear roughly balanced.”

United Kingdom BBA Mortgage Approvals came in at 39.403K, above forecasts (38.9K) in November

United Kingdom BBA Mortgage Approvals came in at 39.403K, above forecasts (38.9K) in November
Read more Previous

EUR/USD eases from weekly tops, still well bid around mid-1.1400s ahead of German CPI

   •  Persistent USD selling bias helped build on the overnight goodish up-move.    •  Thin liquidity conditions holding traders from placing any agg
Read more Next
Start livechat