USD/CNY Fundamental Forecast – February 10, 2016

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Published: Feb 9, 2016, 05:09 UTC

Analysis and Recommendation: The USD/CNY is flat at 6.5739 with China out on holiday. China's announcement on Sunday that its foreign exchange reserves

USD/CNY Fundamental Forecast – February 10, 2016

Analysis and Recommendation:

The USD/CNY is flat at 6.5739 with China out on holiday. China’s announcement on Sunday that its foreign exchange reserves had fallen by almost US$100 billion in January to their lowest level in more than three years was not as bad as analysts expected. But it cast further doubt on how much longer Beijing can defend the yuan from falling.

The Chinese markets are closed this week for the Lunar New Year holiday. On Monday, the yuan was at 6.5685 per dollar, slightly stronger than Friday.

Federal Reserve Chair Janet Yellen is scheduled to appear on Wednesday and Thursday in Congress to discuss the economy and monetary policy. Markets are waiting to see what she indicates about how fast the Fed will lift rates following its first rate hike in December after more than nine years.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole. Please click on the links to find the most recent reports for this asset.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
	China – Lunar New Year
GBP	BRC Retail Sales Monitor (YoY) (Jan)	2.6%	0.4%	0.1%
AUD	NAB Business Confidence (Jan)	2	2	3

Upcoming Economic Events that you should be monitoring:

Wednesday, February 10, 2016

Cur.	Event	Actual	Forecast	Previous
	China – Lunar New Year
USD	API Weekly Crude Oil Stock			3.837M
NZD	Electronic Card Retail Sales (MoM)		0.3%	-0.2%
AUD	Westpac Consumer Sentiment		-1.0%	-3.5%
AUD	HIA New Home Sales (MoM) (Dec)			-2.7%
GBP	Industrial Production (MoM) (Dec)		-0.1%	-0.7%
GBP	Manufacturing Production (MoM)		0.1%	-0.4%
GBP	NIESR GDP Estimate			0.6%
USD	Fed Chair Yellen Testifies
USD	Crude Oil Inventories		3.933M	7.792M
USD	FOMC Member Williams Speaks
USD	Federal Budget Balance (Jan)		45.0B	-14.0B