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Currencies affected by China's Economy

  • #21
  • Oct 13, 2014 11:32am Oct 13, 2014 11:32am
Here's a quote I just picked up from the FXCM website...
Now that yuan trades freely and the exchange rate fluctuates, traders are flocking to CNH.

I expect more brokers will be offering the Yuan up for trading interests soon then...
  • #22
  • Oct 13, 2014 11:37am Oct 13, 2014 11:37am
Quoting Ryan420
China is a major trade partner with NZ. The Chinese central bank (PBoC) limits the trading of their currency to help avoid manipulation by others. They are starting to ease up, setting up direct exchanges recently with the NZD, and widening their trading band to 2%.
The vibe I'm getting more and more is that the economies doing robust buisness with China are more likely to benefit from it's expansion. So good news for the Yuan, should also strengthen AUD and NZD to a greater degree than the other currencies maybe. I'm really curious to see how these will translate technically oon charts!
  • #23
  • Oct 13, 2014 11:40am Oct 13, 2014 11:40am
Yuan gets brought up when USD's global currency status is in question too!
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  • #24
  • Oct 13, 2014 11:41am Oct 13, 2014 11:41am
Quoting Ryan420
Chinese growth = global growth, has been good for stock markets around the world too.
I agree.
  • #25
  • Oct 13, 2014 11:44am Oct 13, 2014 11:44am
USDCNY charts
Attached Image(s) (click to enlarge)
Click to Enlarge Name: USDCNY weekly.png Size: 19 KB
Click to Enlarge Name: USDCNY monthly 1.png Size: 11 KB
there is always, always another trade!!
  • #26
  • Oct 13, 2014 11:47am Oct 13, 2014 11:47am
Quoting san99
{quote} From what I understand the CNY is not a fully convertible currency and with capital controls on the currency that precludes its trading. But you can trade CNH, which is CNY rate traded in Hong Kong. I believe FXCM also offers that now.
Very important clarification there San99! Tnx. So there is a distinction in trading the CNH as opposed to the CNY directly. I assume of course that the correlation between the two is a direct one?
  • #27
  • Oct 13, 2014 11:49am Oct 13, 2014 11:49am
Quoting profitfarmer
USDCNY charts {image} {image}
OMG. Will you look at those lovely trends. Since 2012! Wow. What broker is that? And whats the spread and ADR like? Tnx profitfarmer.
  • #28
  • Oct 13, 2014 11:53am Oct 13, 2014 11:53am
Quoting profitfarmer
USDCNY charts {image} {image}
Those charts also confirm what I'd been saying fundamentally about the Chinese economy! Damn! If my broker offered that pair, spread-vs-ADR permitting, I'll be all over that pair right now like bread on butter!(short of course!)
  • #29
  • Oct 13, 2014 12:05pm Oct 13, 2014 12:05pm
Thanks stt, great explanation!


Quoting stt
{quote} There are two versions of Yuan. CNY (onshore) and CNH (offshore). Chineese govt created CNH as a pathway to make CNY free floating in the future. Curently CNH is traded offshore and there is no restriction on who can trade it. the local importer/exporter can convert CNH to CNY 1:1 (with certain conditions) so that is the link between them. but as you can see CNH trades below CNY because it is not fully convertible to CNY. when trading in CNH increases (it is growing) then china can perhaps make it fully convertible for everyone thus making...
  • #30
  • Oct 13, 2014 12:16pm Oct 13, 2014 12:16pm
Quoting stt
{quote} There are two versions of Yuan. CNY (onshore) and CNH (offshore). Chineese govt created CNH as a pathway to make CNY free floating in the future. Curently CNH is traded offshore and there is no restriction on who can trade it. the local importer/exporter can convert CNH to CNY 1:1 (with certain conditions) so that is the link between them. but as you can see CNH trades below CNY because it is not fully convertible to CNY. when trading in CNH increases (it is growing) then china can perhaps make it fully convertible for everyone thus making...
Very enlightening clarification my friend, Tnx. I noticed though that profitfarmer posted a USDCNY chart (a few posts back), does that mean CNY is perhaps already free floating?
  • #31
  • Oct 13, 2014 12:45pm Oct 13, 2014 12:45pm
unfortunately it isn't free floating...
there is always, always another trade!!
  • #32
  • Oct 13, 2014 12:50pm Oct 13, 2014 12:50pm
Quoting LITEchild
{quote} Can you post a chart of the USDCNH? I'm curious as to what the price action history looks like. What's the spread on your broker?
I sent you some stuff by email, FF doesn't let me upload them here. The spread is currently 28-29 pips.
k
  • #33
  • Oct 13, 2014 1:01pm Oct 13, 2014 1:01pm
Quoting kprsa
{quote} I sent you some stuff by email, FF doesn't let me upload them here. The spread is currently 28-29 pips. k
Tnx buddy! Will check it out asap.
  • #34
  • Oct 13, 2014 1:02pm Oct 13, 2014 1:02pm
Quoting profitfarmer
unfortunately it isn't free floating...
...does that imply it cannot be traded in similar fashion to other popularly traded pairs? What are the pertinent differences?
  • #35
  • Oct 13, 2014 1:22pm Oct 13, 2014 1:22pm
Quoting LITEchild
{quote} ...more importantly, why isn't it possible to trade the YUAN directly like other countries currencies???
Some brokers offer offshore Yuan pairs, you might try them if you want.
Love the game, love the markets!
  • #36
  • Oct 13, 2014 1:59pm Oct 13, 2014 1:59pm
Quoting Stcm
{quote} Some brokers offer offshore Yuan pairs, you might try them if you want.
Tnx buddy.
  • #37
  • Oct 13, 2014 2:28pm Oct 13, 2014 2:28pm
Attached Image
  • #38
  • Oct 13, 2014 2:38pm Oct 13, 2014 2:38pm
Quoting LITEchild
{quote} ...does that imply it cannot be traded in similar fashion to other popularly traded pairs? What are the pertinent differences?
Hi, I think Ryan's posts here offer a strong possibility for a fundamental trading strategy... Trading once the value exits the channel, the ultimative recurrence.
Ryan420, cheers!
k
  • #39
  • Oct 13, 2014 3:21pm Oct 13, 2014 3:21pm
Quoting kprsa
{quote} Hi, I think Ryan's posts here offer a strong possibility for a fundamental trading strategy... Trading once the value exits the channel, the ultimative recurrence. Ryan420, cheers! k
Are you serious? What was the plan again? What channel?
  • #40
  • Oct 13, 2014 3:24pm Oct 13, 2014 3:24pm
Quoting kprsa
{quote} Hi, I think Ryan's posts here offer a strong possibility for a fundamental trading strategy... Trading once the value exits the channel, the ultimative recurrence. Ryan420, cheers! k
...you mean this post???
Quoting Ryan420
The PBoC actively intervenes if the currency surpasses +/-2% of their daily fix (9:15pm us-et) by using their foreign currency reserves(usd) or creating Yuan. The central bank can then open their fix the next day, depending on their balance of domestic & foreign ccy. Usd/Cny has highly liquid derivatives that Asian banks use to trade the rate via binary & plain options.
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