People Deliberately Lowered The RMB Exchange Rate To Pave The Way For Expanding The Exchange Rate Floating Range.

The economic data released by the US last night were mixed. In February, the initial value of the Markit manufacturing purchasing index (PMI) rose from 53.7 in January to 56.7, the highest since May 2010. But in February, the Philadelphia fed manufacturing index dropped sharply from January +9.4 to -6.3, the lowest in 2013 P. The mixed data highlight the confusion and lack of clear consensus in the US economy. The US dollar index continued to wander around the 80 pass, while other major currencies were mainly collation. The US dollar rebounded to 102 above the 101.67 yen. < /p >
HSBC China's Manufacturing Purchasing Managers' index (PMI) fell further from 49.5 in January to 48.3, down from 49.5 in February, and the lowest level since July 2013, indicating that China's small and medium-sized manufacturing activities are shrinking P. China's economic slowdown will inevitably affect the market demand for commodities. < a href= "//www.sjfzxm.com/news/index_cj.asp" > Australian dollar to us dollar < /a > will be pressed down from 0.90 to 0.8937 lows. Australia's domestic economic fundamentals remain weak and China's economic growth continues to slow down, which will limit the performance of the Australian dollar and continue to maintain a 0.8500 view of the Australian dollar against the US midline target. < /p >
< p > > a href= "//www.sjfzxm.com/news/index_cj.asp" > People's Bank of China (/a) (PBoC) announced on Wednesday that this year will gradually improve the RMB exchange rate formation mechanism, expand the exchange rate floating range in an orderly way, and continue to expand the cross-border use of RMB, and accelerate the RMB capital account convertibility. The Central Bank of the people's Bank of China has been steadily lowering the RMB exchange rate this week. The US dollar's central parity rose from 6.1053 on Monday to 6.1146 yesterday, further rising to 6.1176 this morning. < /p >
< p > the people's Bank of China seems to be trying to change the expectation of the unilateral a href= "//www.sjfzxm.com/news/index_cj.asp" > /a >, hoping to create a two-way fluctuating market expectation by artificially lowering the RMB exchange rate, and reduce the risk of the substantial appreciation of RMB when the floating range of the exchange rate is widened, so as to pave the way for further enlarging the floating range of exchange rate. The renminbi is still the currency that the central bank can intervene and control. If the people's Bank of China deliberately intends to lower the RMB exchange rate, the yuan will continue to fall further until the central bank is satisfied. < /p >
< p > < strong > trading strategy < /strong > < /p >
< p > strong > euro / dollar: short term material will continue to be restrained by the upper 1.38-1.3893 resistance zone < /strong > /p >
< p > Germany in February, the initial value of PMI in Markit/BME manufacturing industry was 54.7, far less than expected 56.3 and 56.3 in January. Meanwhile, the service industry PMI also dropped from 56.5 in January to 55.4. In France, the initial value of PMI in Markit/CDAF services industry in February also dropped from 48.9 in January to 46.9, a new low in the past 9 months. In the same period, the manufacturing PMI also dropped from 49.3 in January to 48.5, or less than expected 49.4. When the data in Germany and France fell unexpectedly, the total PMI of the euro zone in February dragged down from 52.9 in January to 52.7, which was also 53.1 below expectations, which once again raised concerns about the prospects for economic recovery in the euro area. < /p >
Under the condition of weak economic growth, even if the European Central Bank continues to hold back in March, it will be difficult for P to provide further impetus for the euro. The euro and the US dollar will continue to be subject to the upper 1.38-1.3893 resistance zone. < /p >