Forex Trading: USDCNH Possibly Consolidating

Greg Michalowski
updated | Forex News By FXDD

As the Chinese economy is seemingly slowing based on the economic indicators and decline in global demand, the Chinese have elected to continue to suppress the value of the Yuan despite the (democratic – controlled) US Senate passing a bill that would impose sanctions against China if they continued their current economic policies of devaluation. On the chart below we see that although the USDCNH has traded extremely erratically the last few weeks, the pair could be consolidating as US Presidential election, global protests and European Sovereign debt crisis are stealing the headlines. Tonight we are expecting Q3 GDP and September Industrial Production in an otherwise light economic calendar this week in the Far East.

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