USD/CNH: Depressed above 7.0900 despite US allegations
- USD/CNH registers three-day losing streak, refreshes intra-day low in the last hour.
- US diplomats keep alleging China for the failure to update WHO about virus outbreak on time.
- Coronavirus updates from the dragon nation seem to keep the bears hopeful.
- US data, pandemic updates awaited for fresh impulse.
Having recently refreshed the intraday low to 7.0915, USD/CNH bounces off to 7.0930 as Chinese markets open for trading on Friday. The pair’s latest moves could be attributed to the initial reaction to the US allegations concerning the global coronavirus (COVID-19) outbreak as well as the pandemic data from China.
The White House Economic Adviser Larry Kudlow and Secretary of State Mike Pompeo repeated the tunes of US President Donald Trump while claiming that China failed to update the World Health Organization (WHO) on time about the virus outbreak.
US President Trump has repeatedly alleged China for the global spread of the COVID-19. However, China has so far not granted any accusations while marking the Trump administration’s failure to tame the pandemic in the US.
On the contrary, the recent coronavirus updates from China suggest sustained declines in new cases, coupled with zero deaths, due to the virus. Also weighing on the pair could be the previous day’s downbeat performance of the US data.
It should also be noted that expectations of global economic slowdown as well as disappointing growth figures from China, as well as US efforts to combat the coronavirus, seem to put a floor under the latest declines.
Given the lack of major data/events during Asia, traders will keep eyes on the pandemic updates while waiting for the busy US session. The reason could be traced from the House passage of the $484 billion aid package and the presence of key data on the economic calendar.
Technical analysis
Failures to cross a five-week-old falling trend line, currently around 7.1035, could keep directing the quote towards a 21-day SMA level of 7.0850.