{"id":20354,"date":"2025-04-09T06:49:58","date_gmt":"2025-04-09T06:49:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20354"},"modified":"2025-04-09T06:49:58","modified_gmt":"2025-04-09T06:49:58","slug":"usdcnh-hits-record-low-amid-trade-war-tensions","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/usdcnh-hits-record-low-amid-trade-war-tensions\/","title":{"rendered":"USDCNH Hits Record Low Amid Trade War Tensions"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/download-81-1-1024x559.png\" alt=\"\" class=\"wp-image-20365\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Offshore yuan (<strong>USDCNH<\/strong>) plunges to a <strong>new low<\/strong> of <strong>7.4288<\/strong> per dollar.<\/li>\n\n\n\n<li>Recovery seen as <strong>USDCNH<\/strong> rises to <strong>7.38333<\/strong> after hitting <strong>7.3361<\/strong> earlier.<\/li>\n\n\n\n<li>Chinese state banks intervene, selling dollars to stabilise the currency.<\/li>\n\n\n\n<li>Escalating U.S.-China trade war, U.S. tariffs push yuan down.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Offshore Yuan Reaches Record Low Amid Escalating Trade War<\/h2>\n\n\n\n<p>The <strong>offshore yuan (USDCNH)<\/strong> hit a <strong>new low<\/strong> on <strong>09 April<\/strong> at <strong>7.4288<\/strong> per dollar, as escalating trade tensions between the <strong><a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/china-vows-to-fight-to-the-end-in-an-ever-uglier-trade-war-with-the-us\/ar-AA1CqMZR?ocid=BingNewsSerp\">U.S. and China<\/a><\/strong> intensified market uncertainty. Following the drop, the <strong>offshore yuan<\/strong> bounced slightly, recovering by <strong>0.62%<\/strong> to <strong>7.38333<\/strong> in the Asian session.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Chinese yuan swings ripple across Asia, rupee traders eye RBI policy <a href=\"https:\/\/t.co\/rvW5DJEYfd\">https:\/\/t.co\/rvW5DJEYfd<\/a> <a href=\"https:\/\/t.co\/qfgST6We7x\">pic.twitter.com\/qfgST6We7x<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1909841259348320435?ref_src=twsrc%5Etfw\">April 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>This sharp depreciation of the yuan occurred amidst escalating trade conflict, following the U.S. imposition of a <strong><a href=\"https:\/\/www.msn.com\/en-us\/news\/politics\/tariffs-on-china-set-to-rise-to-at-least-104-on-wednesday-white-house-says\/ar-AA1CxCGH?ocid=BingNewsSerp\">104% tariff<\/a><\/strong> on Chinese imports, causing investors to reassess the currency\u2019s stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Intervention by Chinese State Banks<\/h2>\n\n\n\n<p>In response to the rapid decline of the <strong>offshore yuan<\/strong>, <strong>Chinese state-owned banks<\/strong> were seen selling dollars in the market to curb the yuan\u2019s fall. Additionally, the <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-08\/pboc-greenlights-yuan-weakness-with-fixing-past-7-2-per-dollar\"><strong>People&#8217;s Bank of China (PBoC)<\/strong> set the <strong>midpoint rate<\/strong> for the onshore yuan<\/a> (<strong>USDCNY<\/strong>) at <strong>7.2066<\/strong>, the weakest level since <strong>September 2023<\/strong>. This intervention aims to prevent further depreciation and stabilize the market.<\/p>\n\n\n\n<p>The <strong>People\u2019s Bank of China (PBoC)<\/strong> continues to <a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/pboc-vows-funding-support-to-sovereign-fund-to-stabilize-market\/ar-AA1Cu0wb?ocid=BingNewsSerp\"><strong>play an active role in moderating the pace of the yuan&#8217;s decline<\/strong><\/a>. While a weaker yuan could help China&#8217;s exports, prolonged depreciation could lead to capital outflows and jeopardize financial stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Outlook for Offshore Yuan<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"449\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/9.4_2-1024x449.jpg\" alt=\"\" class=\"wp-image-20368\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDCNH retraces from resistance at 7.42883, testing support at 7.3361, as seen on the\u00a0<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p><strong>USDCNH decreased by 0.55%, closing at 7.38284 after opening at 7.42391.<\/strong> The pair initially moved higher, reaching a peak of 7.42883 before retracing and closing at 7.38284.<\/p>\n\n\n\n<p>The moving averages (MA 5,10,30) suggest a bearish shift, as the shorter-term moving averages are starting to cross below the longer-term ones, indicating downward pressure. The MACD (12,26,9) further confirms this trend, showing a negative histogram as the MACD line (blue) moves below the signal line (yellow).<\/p>\n\n\n\n<p>Key levels to monitor include <strong>7.42883 <\/strong>as immediate resistance and <strong>7.3361 <\/strong>as support. A break below support could suggest further declines, while a recovery above resistance could signal a possible reversal. Watch for developments in the broader market for further confirmation of this trend.<\/p>\n\n\n\n<p>As the trade conflict between the <strong>U.S. and China<\/strong> remains unresolved, the <strong>offshore yuan<\/strong> continues to face volatility. Analysts will closely monitor any developments in trade talks and interventions by the <strong>PBoC<\/strong> to gauge the next movements of the currency. <\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong>&nbsp;and&nbsp;<\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong>&nbsp;now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USDCNH hits a record low as escalating U.S.-China trade tensions intensify. Chinese state banks intervene to stabilise the currency amid trade war fears. -vtmarkets.com<\/p>\n","protected":false},"author":66,"featured_media":20365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[68],"class_list":["post-20354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-yuan"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=20354"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20365"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=20354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=20354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=20354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}