Yuan Awaits Trump-Xi Summit, Shanghai Composite Tests Key Resistance

Talking Points

U.S and Chinese leaders’ talks on trade could establish a trend for a USD/CNH.

– Chinese equities continued to arise following a thesis of a new special mercantile zone.

– Check out how sell traders are positioning on equities regulating a DailyFX SSI.

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Yuan Rates

The USD/CNH is inconclusive forward of a Trump-Xi summit. The offshore Yuan span is contrast a tip of a together for a down trend. In a entrance dual leaders’ meetings, trade issues will be a categorical focus. A vital shared trade dispute will expected do some-more mistreat to China than a U.S., as Chinese producers are still mostly relying on international demand. As a result, if Trump takes a hardline on China’s trade practices during a meetings, it will be a some-more bearish motorist to a Yuan and might send a USD/CNH higher.

USD/CNH 4-hours

Yuan Awaits Trump-Xi Summit, Shanghai Composite Tests Key Resistance

Prepared by Renee Mu.

The PBOC enervated a Yuan somewhat on Thursday, down -24 pips or -0.04% to 6.8930. In fact, a Yuan repair has been weaker than a offshore Yuan rate for scarcely a month. Without a regulator serve confirming on Yuan’s strength, traders will wish to be discreet when demeanour into a longer-term bearish setup for a USD/CNH.

In further to a U.S.-China summit, a NFP news to be expelled on Friday will be another pivotal motorist to Dollar pairs including a Dollar/Yuan. Watch a Sr. Currency Strategist Chris Vecchio’s video for technical considerations in DXY Index.

Chinese Shares

Chinese equities edged aloft on Thursday, driven by a thesis of a launch of a Special Economic Zone (SPZ) in Xiongan. Multiple shares strike a daily limit-up turn of 10% for a second day, including BBMG, China Fortune Land Development, Hesteel, Tangshan Jidong Cement and Langfang Development.

This gathering a Shanghai Composite Index rising for a second day as well, adult +0.33%. The equity index is coming 3438, a top firm of a yearly open operation and a high day tighten in final November. Amid this SPZ theme, a contingency of a cost violation above a pivotal insurgency turn has increased.

Yuan Awaits Trump-Xi Summit, Shanghai Composite Tests Key Resistance

Data downloaded from Bloomberg; draft prepared by Renee Mu.

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