Finance News

Story: Yuan Surges Toward Key 6.90 Level Against Dollar After 11-Week Rally

By Steven Anderson

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Yuan momentum keeps building. Societe Generale analysts said February 10 that China's currency has now rallied for 11 straight weeks, pushing the USD/CNY exchange rate…

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The streak looks pretty solid right now. China's economic data has been getting better, and that's boosting confidence in the Yuan big time.

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Markets are basically holding their breath.

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The People's Bank of China hasn't said anything about the Yuan's run-up yet. That silence is making traders nervous because the PBOC's next move could flip the whole trajectory.

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February 10 saw the Yuan trading at 6.91 per dollar, just a hair away from that big 6.90 resistance point.

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U.S. economic data keeps throwing curveballs too.

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Jerome Powell's comments last week about taking a cautious approach to rate hikes have weakened the Dollar somewhat.

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China's GDP figures drop February 15, and HSBC analysts expect these numbers to give more clues about the nation's economic health.

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Behind the scenes, there's more happening. Sources within China's Ministry of Finance say top financial policymakers will meet February 20 to discuss recent currency movements.

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Frederic Neumann from HSBC pointed out something interesting about capital flows. He said, "China's bond market has seen increased foreign interest," and that influx of money…

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The Shanghai Stock Exchange is set to react February 21 to all these currency developments. Analysts think Yuan moves could really impact stock performance, especially for…

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February 28 brings China's manufacturing PMI data, another key piece of the puzzle. The manufacturing sector drives a lot of China's economic growth, so traders will be watching…

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The U.S. Treasury's role can't be ignored either. Their semi-annual currency report comes out in March, and there's always the risk they could label China a currency manipulator.

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Right now, the Yuan's 11-week winning streak has everyone's attention. The 6.90 level looks vulnerable, and a break could trigger algorithmic buying that pushes the currency even…

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The PBOC's continued silence leaves markets guessing about their tolerance for further appreciation.

The Currency Analytics

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