By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The USD/CNY is up trading at 6.3110 after opening at 6.3091. It seems that the new rules from China on the freeing the yuan movement are helping the swing and building interest in the currency.

Yesterday’s trading was all about risk aversion. With several important China eco reports due this week including trade balance, PPI & CPI as well as retail sales. We should see a lot of activity. In the meantime, global sentiment has been an overall run to the safety of the USD and the yen pushing both of the currencies to recent highs.

The markets are hoping the upcoming numbers support the “soft landing” course for China

Economic Reports for May 8-9, 2012 actual v. forecast

May 8

EUR

German Industrial Production (MoM)

2.8%

0.8%

-0.3%

CAD

Housing Starts

244.9K

204.0K

214.8K

Upcoming Economic Events that affect the AUD, NZD, JPY, CNY and USD

May 10

02:30

AUD

Employment Change

-5.5K

44.0K

02:30

AUD

Unemployment Rate

5.3%

5.2%

TBD

CNY

Chinese Trade Balance

7.93B

5.35B

13:30

USD

Import Price Index (MoM)

-0.2%

1.3%

13:30

USD

Trade Balance

-50.0B

-46.0B

13:30

USD

Initial Jobless Claims

369K

365K

13:30

USD

Continuing Jobless Claims

3278K

3276K

14:30

USD

Fed Chairman Bernanke Speaks

19:00

USD

Federal Budget Balance

30.0B

-198.2B

May 11

02:30

CNY

Chinese PPI (YoY)

-0.3%

02:30

CNY

Chinese CPI (MoM)

0.2%

06:30

CNY

Chinese Fixed Asset Investment (YoY)

20.9%

06:30

CNY

Chinese Industrial Production (YoY)

11.9%

06:30

CNY

Chinese Retail Sales (YoY)

15.2%

13:30

USD

Core PPI (MoM)

0.3%

13:30

USD

PPI (MoM)

0.0%

14:55

USD

Michigan Consumer Sentiment

76.4

Government Bond Auctions (this week)

Date Time Country

May 10 15:00 US

May 10 17:00 US

May 11 09:10 Italy BOT auction

May 11 10:00 Belgium

Click here to read USD/CNY Technical Analysis.

Originally posted here