USD/CNH Technical Analysis

The dollar has been sideways against the Chinese Yuan for the past few days and is now trading at 6.4638. This week Fed’s Vice President Richard Clarida said the Fed may have to raise interest rates earlier than expected and this has caused the dollar to appreciate against most of its counterparties. However, given the growing tension between the US and China, investors have remained undecided about the next steps to be taken. This Friday will bring the Non-Farm Payroll data and the US unemployment rate. As the Fed said it is relying on the unemployment rate to make monetary policy decisions, a very different job creation figure than expected could cause high voting this Friday as investors will try to rebalance their portfolios in line with their forecasts for the next steps of the Fed.