{"id":30266,"date":"2025-09-05T05:22:55","date_gmt":"2025-09-05T05:22:55","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=30266"},"modified":"2025-09-05T05:22:55","modified_gmt":"2025-09-05T05:22:55","slug":"yuan-strengthens-as-stocks-rebound","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/yuan-strengthens-as-stocks-rebound\/","title":{"rendered":"Yuan Strengthens as Stocks Rebound"},"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\/Image_fx-2025-05-16T130402.470-1024x559.png\" alt=\"\" class=\"wp-image-22441\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>USDCNH dipped 0.06%<\/strong> to 7.1316 as risk appetite improved in Asia<\/li>\n\n\n\n<li><strong>PBoC set midpoint at 7.1064<\/strong>, 326 pips stronger than expected<\/li>\n\n\n\n<li>Markets await <strong>U.S. NFP data<\/strong> to gauge Fed rate cut trajectory<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The Chinese yuan saw mild gains Friday in both onshore and offshore trading as domestic stocks rebounded from sharp losses and the dollar traded on the back foot.<\/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\">A surge in Chinese equities is stoking bullish sentiment toward the yuan, raising prospects of a virtuous cycle where gains in one asset class reinforce confidence in the other <a href=\"https:\/\/t.co\/r7TDYWKuze\">https:\/\/t.co\/r7TDYWKuze<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1963380019067056161?ref_src=twsrc%5Etfw\">September 3, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Our research desk noted that the lack of follow-through on regulatory fears led to a bounce in local markets, which in turn provided some positive spillover effects for the region.<\/p>\n\n\n\n<p>Meanwhile, the <strong>People\u2019s Bank of China (PBoC)<\/strong><a href=\"https:\/\/t.co\/32KxAWbOJp\" target=\"_blank\" rel=\"noopener\" title=\"\"> guided the yuan firmer<\/a> by setting the daily midpoint at <strong>7.1064<\/strong>, well above market expectations. The offshore yuan <strong>(USDCNH)<\/strong> followed suit, trading around <strong>7.1334<\/strong> by midday in Asia.<\/p>\n\n\n\n<p>The broader dollar drifted lower in anticipation of the <strong><a href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\" target=\"_blank\" rel=\"noopener\" title=\"\">U.S. non-farm payrolls<\/a> (NFP)<\/strong> report due later Friday, which could prove pivotal for Fed rate expectations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The USD\/CNH pair is trading at 7.13, edging lower by 0.06% and continuing a downtrend that has been in place since April\u2019s spike to 7.43.<\/p>\n\n\n\n<p>The decline has been steady, with the pair now hovering just above the 7.11 support zone.<\/p>\n\n\n\n<p>Moving averages (5, 10, 30) are aligned bearishly, reinforcing short-term selling pressure, while the MACD remains negative, confirming momentum stays on the downside.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-6-1024x453.jpg\" alt=\"\" class=\"wp-image-30267\" \/><figcaption class=\"wp-element-caption\">#image_title<\/figcaption><\/figure>\n\n\n\n<p>If the 7.11 level breaks decisively, the next potential support lies near 7.05. On the upside, resistance sits at 7.20 and then 7.25, which would need to be reclaimed to signal a shift back to bullish control.<\/p>\n\n\n\n<p>For now, the technical picture leans bearish, and sentiment remains cautious with traders watching closely for signals from <a href=\"https:\/\/t.co\/LTco8XLTUV\" target=\"_blank\" rel=\"noopener\" title=\"\">Chinese policymakers<\/a> and US economic releases that could impact capital flows and yuan stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>A weak NFP read could deepen pressure on the greenback, extending USDCNH\u2019s downtrend toward the <strong>7.10 zone<\/strong>.<\/p>\n\n\n\n<p>However, any hawkish surprise from U.S. jobs data may cap further yuan gains, especially amid lingering macro uncertainty in China.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s yuan edged higher on Friday, buoyed by a partial stock market recovery and a softer dollar ahead of the U.S. non-farm payrolls release. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":22441,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10,68],"class_list":["post-30266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex","tag-yuan"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/30266","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\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=30266"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/30266\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/22441"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=30266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=30266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=30266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}