Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Chinese yuan chips at dollar as iron ore catches bid on stimulus news

The Chinese yuan gained against the dollar overnight amid risk-on market; iron ore prices rose after news circulated that China may boost stimulus and USD/CNH is trading near triangle support after dropping below 20-day SMA.

Source: Bloomberg

Friday’s Asia-Pacific outlook

Asia Pacific markets look set to open higher following the third day of gains on Wall Street, with the S&P 500 closing 1.49% higher. A possible global recession remains a concern for investors, but markets trimmed bets on Federal Reserve rate hike bets, now seen topping out early next year, according to overnight index swaps. Still, traders may be cautious moving into the weekend ahead of tonight’s US non-farm payrolls report. Analysts see the June headline figure crossing the wires at +268k, according to a Bloomberg survey.

The Australian dollar tracked higher against the US dollar, helped by a dollar that weakened amid the risk-on market sentiment. A rise in iron ore prices may provide another tailwind for AUD. China may consider new stimulus measures, according to sources cited by Bloomberg news. Beijing may permit local governments to conduct special bond sales through year-end to finance infrastructure projects. The move would likely need congressional approval. The yuan has strengthened against the Greenback since the news hit.

In the United Kingdom, Prime Minister Boris Johnson announced his resignation following a wave of resignations from his government. A successor is being sought out by UK Tories, who aim to have a new pick by September. The British Pound made headway against the US dollar and euro after the announcement as the uncertainty around his tenure cleared. EUR/GBP fell to the lowest level since May 23.

Crude oil prices rebounded despite a large build in US stockpiles. The Energy Information Administration (EIA) reported a 8.24 million barrel increase in crude oil stocks for the week ending July 01. That was well above the 1 million barrel draw that analysts expected. The news out of China may be providing support for oil prices. Altogether, APAC stocks and currencies may extend their overnight gains, but traders may remain cautious given the upcoming NFP data.

Notable events for July 8:

  • Japan – Bank Lending (JUN)
  • Indonesia – Consumer Confidence (JUN)
  • Japan – Eco Watchers survey (JUN)

USD/CNH technical forecast

Trading within a Symmetrical Triangle pattern, USD/CNH may see a directional break in the near term as prices near the triangle’s apex. A slightly bullish bias is lent to the cross, given its preceding uptrend, but prices are falling near support. A break below support could bring the rising 100-day SMA into focus. Lately, prices have traded around the 20-day Simple Moving Average.

USD/CNH eight-hour chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.