17 Mar 2015
USD/CNY: Yuan rallies to fresh 4 week highs on PBOC intervention
FXStreet (Mumbai) - The Chinese Yuan jumped to fresh four week highs against the US dollar in the European session amid increased speculation of the People's Bank of China’s (PBOC) intervention in fx markets and on ongoing weakness in the US dollar.
USD/CNY falls from 6.2618
Currently, USD/CNY edged -0.20% lower and trades at a new four week low of 6.2495 levels. The pair accelerated losses following suspected central bank intervention and positive comments, including a pledge, on Monday from Chinese Premier Li Keqiang to push for reforms and further support slowing economic growth.
Traders also noted that big state-owned banks massively sold dollars, which is likely to support the Chinese currency on behalf of the PBOC, the country's central bank.
Moreover, broad based US dollar weakness also added to the downside in USD/CNY. Meanwhile, traders now turn their attention towards key US housing data, as FOMC commences its two-day policy meeting later today.
USD/CNY Technical Levels
To the upside, the next resistance is located at 6.2550 levels and above which it could extend gains to 6.2620 levels. To the downside, immediate support might be located at 6.2460 levels and below that at 6.2400 levels.
USD/CNY falls from 6.2618
Currently, USD/CNY edged -0.20% lower and trades at a new four week low of 6.2495 levels. The pair accelerated losses following suspected central bank intervention and positive comments, including a pledge, on Monday from Chinese Premier Li Keqiang to push for reforms and further support slowing economic growth.
Traders also noted that big state-owned banks massively sold dollars, which is likely to support the Chinese currency on behalf of the PBOC, the country's central bank.
Moreover, broad based US dollar weakness also added to the downside in USD/CNY. Meanwhile, traders now turn their attention towards key US housing data, as FOMC commences its two-day policy meeting later today.
USD/CNY Technical Levels
To the upside, the next resistance is located at 6.2550 levels and above which it could extend gains to 6.2620 levels. To the downside, immediate support might be located at 6.2460 levels and below that at 6.2400 levels.