The Chinese Yuan has recently reached a new high against the US Dollar on Thursday’s early trades. The central parity rate of the currency touched the new level as the US Dollar weakened within the said period.
On Thursday, the Yuan Renminbi has recently added 60 basis points to 6.2822 against the U.S. dollar. According to the China Foreign Exchange Trade System, this recent indication was marked as a new high since the last time the pair hit such level was back in Aug. 11, 2015.
Also, analysts state that the performance of Yuan exceeded the market expectations which mirrored the economy of China respectively.
The dollar index, which measures the US Currency’s performance against six other major currencies, declined by at least 3.4 percent last month.
As reported by the data posted last Wednesday, The foreign exchange reserves of China saw a twelve consecutive increase which ultimately lead it to 3.16 trillion U.S. dollars at the end of January.
Additionally, the State Administration of Foreign Exchange told reports that the upsurge rooted from the non-dollar currencies’ strong performances as well as the asset prices. The bureaucrats estimated a rather balanced supply and demand of forex. They also noted that the exchange rate of the Yuan would see more "two-way movement" than usual.
The US Dollar’s trades against the Chinese Yuan have indeed indicated a strong bullish performance in its recent sessions. The bullish indication was recorded to be a 0.91% from the previous trades. This was a 0.0573 addition from the previous records.
The recent upward movement recovered the pair from being oversold. The RSI indication of the pair is currently at 37.40.
The Coppock curve also displayed optimism for the pair. However, it was strong enough to pull it from the depths of the negative region. It is currently at -4.02 which would recommend a sell for the pair. If to consider the news above, a hold on sell would be advised otherwise.
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