wrapper

PBoC set the reference rate at the lowest level since October 2010.

Monday, Jul 18 2016
There were no data releases from Australia today. A stronger-than-expected reading on Chinese economic growth assuaged investors’ fears about slowing global growth, helping to boost the dollar. The Chinese yuan hit a new five and half year low on Monday as the central bank set the reference rate at the lowest level since October 2010. The drop in the yuan comes as recent data on surging loan growth and capital flight overshadows figures showing better-than-expected economic growth for the second quarter.
On Monday morning, the onshore yuan in Shanghai at one stage depreciated to 6.6955 per dollar, its weakest level since September 2010. It came after the People’s Bank of China set the yuan reference rate at 6.6961 against the US dollar, down 156 basis points or 0.23 per cent from Friday’s fixing, approaching its lowest level in six years. “Although the news was a clear relief to the market that was concerned about Chinese growth, critics pointed out that much of the improvement was driven through expansion of credit as new yuan loans exploded,” said Boris Schlossberg, managing director of currency strategy at BK Asset Management.
 
Aussie is currently being traded few points below 0.76 level. Pair is likely to find support around 0.7550 handle and resistance above 0.7650 level.
More in this category: « USD - Major events in the week ahead ECB likely to keep policy unchanged on Thursday »

Latest from Editor

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.