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Forex - Chart USD/CNY 1-Yr Update: Rally capped at the 50-day MA
Written by article default Thursday, 18 November 2010 11:18
Easing back from the 6.5045 high which marks the 50-day MA. This keep the 6.5055 and 6.5250, Oct highs, out of reach though dips see support at 6.4750 and 6.4559 then the 6.4500 level. The latter must hold to sustain the bull bias. Failure here threatens setback to 6.4230 and 6.4145 lows. [P.L]
R5: 6.5566
Forex - AUD/USD, AUD/JPY Flows - Yao in FT on China standing firm at G20/CNY, surplus $27b
Limited reaction to China trade balance, coming in higher at $27.1bln, vs $25bln expected. China exports +22.9%, imports +25.3%. Some focus on FT piece by Yao Yang : Why Beijing is confident it can stand firm. : Many hope G20 Summit can reach an agreement in which large countries coordinate their currencies, staving off a full-fledged "currency war." US Trsy proposed a cap of 4% c/a surplus/deficit. At the Summit, China will stand firm against any attempts to force fast appreciation. China's leaders believe Americans will come to see the benefit from the cheap goods a weak Renminbi provides. This new round of QE, is the Fed's last weapon for force China to accept a passive revaluation. The author is director of China Centre for Economic Research. On FX, AUD/USD steady at 1.0049-53, with real money buying on dips, but talks Asian, China huge sellers yesterday, pushing it through Parity 0.9997. AUD/JPY at 82.05-10, interest to sell on rallies on risk aversion b4 G20.