Chart of the day: Offshore yuan yawns
Though volume and observed volatility in offshore yuan trading picked up a little late last week, price moves are not technically significant. Despite dipping to this year’s low, it has quickly made that back this week, even though momentum remains marginally bearish. In fact, one could conclude that because we are trading between the 50 and 200-day moving averages and holding at the 50 per cent retracement level (from the low in August last year), this currency pair has no dominant trend. Instead, we shall allow for a lot more random moves between 6.44 and 6.53 over the coming month. Note that all of the above takes place against a backdrop of currency traders rethinking their US dollar outlook.
Nicole Elliott is a technical analyst