USD/CNY Fundamental Analysis – December 3, 2015 – Forecast

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Published: Dec 2, 2015, 05:28 GMT+00:00

Analysis and Recommendation: The USD/CNY was flat this morning with a lack of data after traders remain worried about Chinese manufacturing after the

USD/CNY Fundamental Analysis – December 3, 2015 – Forecast

Analysis and Recommendation:

The USD/CNY was flat this morning with a lack of data after traders remain worried about Chinese manufacturing after the lackluster private and public PMI reports earlier this week. The currency showed little response to the recovery of the greenback on Wednesday morning. The CNY is trading at 6.3988. China’s yuan strengthened in offshore trading, with the central bank boosting the currency’s reference rate for the first time in five days after the dollar declined on speculation the Federal Reserve will take a gradual approach to raising interest rates.

The yuan fell the most in almost a month on Tuesday on concern China will reduce its support for the currency after winning reserve status at the International Monetary Fund. The inclusion, announced on Monday, doesn’t mean the end of financial reforms and the yuan’s value must be decided by the market, Chinese Vice Finance Minister Zhu Guangyao said in Washington.

The Chinese economy is showing signs of a stubborn slowdown that has resisted six interest-rate cuts since November 2014. A gauge of manufacturing activity slipped to the weakest in more than three years last month, with output, new orders, inventories and employment all declining from October.

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Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	GDP (YoY) (Q3)	2.5%	2.4%	1.9%
AUD	GDP (QoQ) (Q3)	0.9%	0.8%	0.3%

Upcoming Economic Events that you should be monitoring:

Thursday, December 3, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Nov)		55.0	54.9
EUR	Deposit Facility Rate (Dec)		-0.30%	-0.20%
EUR	Interest Rate Decision (Dec)		0.05%	0.05%
EUR	ECB Press Conference
USD	Fed Chair Yellen Testifies
USD	ISM Non-Manufacturing PMI (Nov)		58.0	59.1