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U.S. Dollar/Chinese Yuan (^USDCNY)

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U.S. Dollar/Chinese Yuan Futures Market News and Commentary

Dollar Gains on Reduced Fed Rate Cut Expectations

The dollar index (DXY00) Tuesday rose by +0.30%.  The dollar on Tuesday recovered from early losses and posted moderate gains as T-note yields jumped on the stronger-than-expected US Nov JOLTS job openings and Dec ISM services reports, which were hawkish for Fed policy and dampened the chances of additional Fed rate cuts in the near term.  Hawkish comments from Richmond Fed President Barkin also supported the dollar when he said if price pressures persist, the Fed will have to be tougher with interest rates.  In addition, stock weakness Tuesday boosted liquidity demand for the dollar.

The dollar Tuesday initially moved lower on negative carryover from Monday when the Washington Post reported that President-elect Trump's aides are weighing a tariff program covering only critical imports.  If implemented, such a plan would disrupt global trade less than expected and reduce the inflationary impact of the tariffs, a dovish factor for Fed policy.  Also, the US trade deficit widened... Read more

Price Performance

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Period Period Low Period High Performance
1-Month
7.2396 +1.27%
on 12/10/24
7.3317 unch
on 01/08/25
+0.0612 (+0.84%)
since 12/06/24
3-Month
7.0558 +3.91%
on 10/09/24
7.3317 unch
on 01/08/25
+0.2724 (+3.86%)
since 10/08/24
52-Week
7.0092 +4.60%
on 09/26/24
7.3317 unch
on 01/08/25
+0.2330 (+3.28%)
since 01/08/24

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Barchart Technical Opinion

The Barchart Technical Opinion rating is a 88% Buy with a Strongest short term outlook on maintaining the current direction.

The market is in highly overbought territory. Beware of a trend reversal.

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Key Turning Points

3rd Resistance Point 7.3420
2nd Resistance Point 7.3355
1st Resistance Point 7.3312
Last Price 7.3317
1st Support Level 7.3204
2nd Support Level 7.3139
3rd Support Level 7.3096

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52-Week High 7.3317
Last Price 7.3317
Fibonacci 61.8% 7.2085
Fibonacci 50% 7.1704
Fibonacci 38.2% 7.1324
52-Week Low 7.0092

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