Chinese yuan stronger on $30bn olive branch hopes
The ongoing Xi–Trump summit has markets on edge.
Reports suggest both sides are weighing tariff reductions on roughly $30bn worth of goods — carefully staying within national security limits.
The reaction was sharp: Chinese tech stocks surged 5% in US trading, clearing a one-month high.
The Chinese yuan also strengthened, with USD/CNH falling to its weakest level in more than three years, now hovering at three-year lows.
For a rebound to build momentum, the pair needs to first move back above the 21-day moving average at 6.8174, followed by the 50-day moving average at 6.8482.
USD gains for third day after this week’s hot US inflation
The Iran conflict has worsened an already stubborn inflation problem, according to the Fed’s Kashkari.
The US jobs market is holding steady but the Fed remains squarely focused on returning inflation to 2%, not shifting the target.
The key variable to watch is how long the Strait of Hormuz remains closed. The takeaway is that inflation risk, not labour market weakness, is the bigger barrier to policy decisions.
The USD index climbed for a third straight day, with the greenback now at monthly highs, providing opportunities for USD sellers.
Aussie, kiwi retreat from recent highs
The Aussie and kiwi were both lower as the USD strengthened.
AUD/USD fell 0.5%, while NZD/USD lost 0.4%.
For NZD/USD, the next key upside resistance sits around 0.6000. On the downside, first support comes in at the 21-day moving average (0.5907), followed closely by the 50-day moving average at 0.5885.
Among more volatile FX pairs, NZD/AUD has dropped to a 13-year low.
USD reaches May highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 11 – 15 May
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
