USD/CNH could be in for a volatile week as central bank policies from the US and China diverge, as well as Friday’s PCE Price Index which will provide further insights into US inflation.
While the PBOC cut lending rates again on Monday in an effort to boost the struggling Chinese economy, investors are also bracing for continued Fed hikes with Chair Powell expected to deliver a hawkish speak at the Jackson Hole Symposium.
USD/CNH had been consolidating following an aggressive rally in April. However, the pair broke above its pennant formation last week, and could now be on track to extend gains towards the double-top highs at 7.1987
Check out this article for an in-depth technical analysis and the economic factors driving this pair:
