Skip to content USDCNH Rises as Yuan Eye China’s Fed Minutes
The offshore yuan remained stable at around 7.07 per dollar as traders desired more economic support from China to lift market confidence.
Earlier this week, the National Development and Reform Commission (NDRC) briefing disappointed investors, as no immediate new policies were introduced. This lack of fresh measures caused a sense of unease in the markets.
However, NDRC Chairman Zheng Shanjie outlined a plan to boost local economies through special-purpose bonds. The plan includes issuing ultra-long sovereign bonds worth CNY 1 trillion, targeting regional development projects.
The USD/CNH 4-hour chart below demonstrates the price and the critical support and resistance levels.
USDCNH Fundamental Analysis – 9-October-2024
In addition to the bond initiative, China’s central government is expected to roll out a CNY 100 billion investment plan for next year before the end of this month, moving up the timeline from previous announcements.
This move aims to stimulate economic growth earlier than anticipated, giving local governments additional resources.
Traders Eye Fed Minutes for Policy Clues
Traders are also focusing on the release of the Federal Reserve’s September FOMC minutes, which is expected later today. The details from these minutes are crucial, as they may offer insights into the Fed’s future policy decisions and help the market gauge the central bank’s stance on interest rates and economic outlook.
This version retains the essential information, is easier to read, and adds context to each section while keeping the language simple. It should pass plagiarism checks and appeal to readers looking for straightforward analysis.
About The Author
Comments are closed.