{"id":23804,"date":"2025-09-05T08:35:49","date_gmt":"2025-09-05T08:35:49","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23804"},"modified":"2025-09-05T08:35:49","modified_gmt":"2025-09-05T08:35:49","slug":"yuan-firms-amid-stock-market-recovery","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-eu\/uncategorized\/yuan-firms-amid-stock-market-recovery\/","title":{"rendered":"Yuan firms amid stock market recovery"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-1024x536.png\" alt=\"\" class=\"wp-image-23807\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-300x157.png 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-768x402.png 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-500x262.png 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-400x209.png 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-350x183.png 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China-200x105.png 200w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/China.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The Chinese yuan gained ground on Friday as improved sentiment in domestic markets, and a softer US dollar offered support. With traders balancing expectations around US jobs data and monitoring signals from Beijing, the currency remains at the centre of attention in global forex markets.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Dollar weakness lifts yuan momentum<\/strong><\/h2>\n\n\n\n<p>The Chinese yuan posted modest gains on Friday in both onshore and offshore trading, supported by a rebound in domestic equities and a softer US dollar.<\/p>\n\n\n\n<p><\/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><\/p>\n\n\n\n<p>According to market observers, fading regulatory concerns helped lift Chinese stocks, which in turn created positive momentum for regional assets.<\/p>\n\n\n\n<p>The People\u2019s Bank of China (PBoC) also contributed to the yuan\u2019s strength by setting the daily reference rate at 7.1064 \u2013 well above market forecasts. The offshore yuan (USD\/CNH) mirrored this move, trading near 7.1334 by midday in Asia.<\/p>\n\n\n\n<p>Meanwhile, the broader dollar weakened ahead of the highly anticipated US <a href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\" target=\"_blank\" rel=\"noopener nofollow\" title=\"non-farm payrolls (NFP)\">non-farm payrolls (NFP)<\/a> release later in the day, a report that could heavily influence expectations for Federal Reserve policy.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis<\/strong><\/h2>\n\n\n\n<p>The USD\/CNH pair is currently trading around 7.13, slipping 0.06% and extending the gradual decline that began after April\u2019s peak near 7.43.<\/p>\n\n\n\n<p>The currency pair remains close to the 7.11 support area, maintaining a steady downtrend. Short-term moving averages (5, 10, 30) are aligned bearishly, pointing to sustained selling pressure. In addition, the MACD remains negative, underlining continued downside momentum.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"453\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1.jpeg\" alt=\"\" class=\"wp-image-23805\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1.jpeg 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1-300x133.jpeg 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1-768x340.jpeg 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1-500x221.jpeg 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1-400x177.jpeg 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1-350x155.jpeg 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/09\/image-6-1024x453-1-200x88.jpeg 200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Picture: USDCNH-ECN trades at 7.1316, edging down 0.06% from its recent level, with support near 7.11 as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>A clear break below 7.11 could expose the next support level around 7.05. On the upside, initial resistance is located at 7.20, followed by 7.25 \u2013 levels that would need to be reclaimed for any shift back towards bullish sentiment.<\/p>\n\n\n\n<p>For now, the technical setup stays bearish, with traders remaining alert to policy signals from Beijing as well as upcoming US economic data that may influence capital flows and yuan stability.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Cautious outlook<\/strong><\/h2>\n\n\n\n<p>Should the NFP report show weaker-than-expected job growth, the US dollar may come under additional pressure, opening the door for USD\/CNH to test the 7.10 area.<\/p>\n\n\n\n<p>Conversely, a strong or hawkish outcome from the US labour data could stall further yuan appreciation, particularly against a backdrop of ongoing macroeconomic uncertainty in China.<\/p>\n\n\n\n<p>In this case, the currency pair may consolidate within its current range as investors reassess both Federal Reserve policy direction and China\u2019s domestic economic resilience.<\/p>\n\n\n\n<p>Market participants will also be watching closely for further PBoC guidance, as the central bank\u2019s daily fixings remain a critical driver of sentiment.<\/p>\n\n\n\n<p>Combined with signals from Chinese authorities on growth measures and fiscal support, these factors will likely determine whether the yuan can sustain its current strength or face renewed selling pressure in the weeks ahead.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chinese yuan gained ground on Friday as improved sentiment in domestic markets, and a softer US dollar offered support. With traders balancing expectations around US jobs data and monitoring signals from Beijing, the currency remains at the centre of attention in global forex markets. Dollar weakness lifts yuan momentum The Chinese yuan posted modest <a href=\"https:\/\/www.vtmarkets.com\/en-eu\/uncategorized\/yuan-firms-amid-stock-market-recovery\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":5,"featured_media":23807,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37,1],"tags":[],"class_list":["post-23804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-uncategorized"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/23804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/comments?post=23804"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/23804\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media\/23807"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media?parent=23804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/categories?post=23804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/tags?post=23804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}