Looking at the USD/CNH chart we’ve been examining, the pair moved higher since we last visited it, however former trendline support has held as resistance and the pair has moved through the November lows to new lows. Some are speculating that the PBOC could be encouraging a stronger currency to continue the globalization of China and encourage the use of its currency. Yuan NDF’s have moved higher very quickly.
USD/HKD Pair Ranging
The USDHKD pair continues to range between the 38.2% – 61.8% retracements, using the 100 day mavg as resistance. Although the Euro has com off a good bit from its highs yesterday, other risk products have better maintained their bids. That being said, weaker equities in the far east and Europe could give the USD back its bid and around the 38.2% the pair could become attractive.
USD/SGD continue to consolidate in this wedge.
