USD/CNH Gains as White House Advisor Declares Trade Deal of US-China Intact

The Chinese currency, offshore yuan (CNH) have exhibited trimmed losses as Peter Navarro, the advisor of White House takes back his statement about the end of the US-China economic alliance.

Navarro disclosed to Fox News initially today that US President Donald Trump has chosen to end the economic agreement with China considering the developing proof that the COVID-19 began in Wuhan. Navarro’s remarks shook the financial markets, making Yuan and other risk-on currencies lower, and safe-haven like the Japanese yen higher.

According to the following Bloomberg interview with Navarro, he said that his earlier comments were taken out of context. They had nothing to do with the trade deal, and he was merely referring to their lack of trust now with China.

Price Outlook

USD/CNH hopped from 7.0590 to 7.0875 and is currently exchanging at 7.0670, showing a 0.14% increase in one day. The pullback could be related to the market’s risk sentiment, caused by Navarro’s explanation. The S&P 500 futures are presently announcing a 0.14% drop, having declined as much as 1.2% about an hour prior.

While the pair is currently on an uptrend, the key levels to watch out for are between 7.074 and 7.0487.

Trump has now affirmed that the exchange with China is not over. Subsequently, the futures could eventually turn positive, triggering USD/CNH back to lows.

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