{"id":20108,"date":"2025-04-07T03:19:07","date_gmt":"2025-04-07T03:19:07","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20108"},"modified":"2025-04-07T03:19:07","modified_gmt":"2025-04-07T03:19:07","slug":"usdcnh-hits-two-month-lows-as-us-china-tension-escalates","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/usdcnh-hits-two-month-lows-as-us-china-tension-escalates\/","title":{"rendered":"USDCNH Hits Two-Month Lows as US-China Tension Escalates"},"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-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/download-81-1024x559.png\" alt=\"\" class=\"wp-image-20109\"\/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDCNH (Offshore yuan) hits a two-month low of <strong>7.239 <\/strong>against the dollar.<\/li>\n\n\n\n<li>The yuan <strong>briefly recovers, closing at 7.3267 per dollar, up 0.40%.<\/strong><\/li>\n\n\n\n<li>The US-China trade war continues to impact the yuan, as expectations rise for further Chinese policy adjustments.<\/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 Hits Two-Month Low Amid Trade Tensions<\/h2>\n\n\n\n<p>The offshore yuan (USDCNH) <strong>sank to a two-month low of 7.239<\/strong> against the dollar, reflecting growing market concerns amid escalating trade tensions between the US and China. The currency&#8217;s decline came in the wake of <strong>US President Trump&#8217;s <a href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/business\/economy\/trump-china-new-tariffs.html\" target=\"_blank\" rel=\"noopener\" title=\"\">new tariffs on Chinese imports<\/a><\/strong>, signaling a worsening trade war.<\/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\">Tech, bank stocks bear the brunt as China retaliates to Trump tariffs <a href=\"https:\/\/t.co\/sX6mLb2Yn1\">https:\/\/t.co\/sX6mLb2Yn1<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1908153203788546433?ref_src=twsrc%5Etfw\">April 4, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Although the <strong>yuan recovered slightly<\/strong>, closing at 7.3267, it remained under significant pressure due to fears that the trade conflict could spill over into broader economic impacts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Pressure on China and Market Expectations<\/h2>\n\n\n\n<p>The recent drop in the yuan reflects market expectations that<strong> China may implement further policy easing, such as cutting borrowing costs or reserve requirements<\/strong>, to counter the impact of the ongoing trade war. These moves are expected to help cushion the economy, but the market is bracing for more volatility as China responds to the tariffs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Outlook<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"452\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/7.4_2-1-1024x452.jpg\" alt=\"\" class=\"wp-image-20111\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDCNH tests resistance at 7.33095 after gaining momentum from 7.239, as seen on the&nbsp;<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>USDCNH increased by <strong>0.40<\/strong>%, closing at <strong>7.32674 <\/strong>after opening at <strong>7.2976<\/strong>. The pair saw a steady rise, reaching a high of <strong>7.33095 <\/strong>before retracing slightly to close near <strong>7.32674<\/strong>.<\/p>\n\n\n\n<p>The moving averages (MA 5,10,30) reflect bullish momentum, with the shorter-term moving averages crossing above the longer-term ones. This indicates a potential for continued upward movement. The MACD (12,26,9) confirms this trend, showing a positive histogram as the MACD line (blue) moves above the signal line (yellow).<\/p>\n\n\n\n<p>USDCNH is experiencing upward pressure, with the price pushing higher above key resistance levels. A sustained move above <strong>7.33095 <\/strong>could signal further gains, while a break below <strong>7.239 <\/strong>might signal a potential pullback. <\/p>\n\n\n\n<p><strong>Despite a recovery in the yuan&#8217;s price<\/strong> after hitting the two-month low, concerns about China\u2019s economic outlook and the US-China trade standoff <strong>continue to create uncertainty in the currency market<\/strong>.<\/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><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The offshore yuan hit a two-month low of 7.239 per dollar as fears of escalating trade tensions with the US intensified, though it slightly recovered to 7.3267 at close. -vtmarkets.com<\/p>\n","protected":false},"author":66,"featured_media":20109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10,68],"class_list":["post-20108","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-ca\/wp-json\/wp\/v2\/posts\/20108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=20108"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20109"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=20108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=20108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=20108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}