USD/CNH Price Glides Near 6.7400, as the Interest Rate Is Kept at 3.70 Percent by the People’s Bank of China (PBOC)

Updated:

USD/CNH price action was still near the 6.7400 price level, as PBOC stayed its interest rate at 3.7 percent. The pair price action is becoming more active, and this is because the dollar Index is currently above 103.00. Recently, the dollar Index dipped to 102.66, which: had a significant effect on the USD.

The annual CPI (Consumer Price Index) for China rose to 2.1 percent last month. This CPI is higher than the forecasted 1.8 percent and previous 1.5 percent. With China being the largest importer of oil, the rising oil price has increased energy costs for households. Since households are now spending more on the energy it is logical to assume that the country’s economy will be affected. Generally, the global rise in oil prices has increased China’s fiscal deficit.

USD/CNH Glides Near 6.7400, as the Interest Rate Is Kept at 3.70 Percent by the People’s Bank of China (PBOC)

More on the USD/CNH Price Actuators


Besides the rising oil prices, the upbeat in Coronavirus cases in China’s major cities (Beijing and Shanghai) has affected demands. Following a critical examination of demands and inflation in the country, the PBOC stayed the interest rate at 3.7 percent. Nevertheless, the PBOC reduced the 5 years interest rate reduced by 15 bps (basis points). Currently, the 5 years interest rate remains at 4.45 percent as against the previous 4.66 percent. And, these are important factors affecting the USD/CNH price action.

Meanwhile, the DXY is making a significant recovery which might push it towards the important resistance level of 103.20. The dollar Index is securely positioned beyond the 103.00 level despite the underperformance of the Initial Jobless Claims. The weekly Initial Jobless claims rolled in at 218,000 which is higher than the previous 200,000.

You can purchase Lucky Block here: Buy LBlock

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.