The USD/CNH remains under pressure at $6.3600 as China news joins the continuing of Ukraine-Russia discussions

USD/CNH is down for the third day in a row after reversing from a five-month high and the 200-day moving average. Nonetheless, the price shows minor losses around the 6.3600 mark during Thursday’s Asian session. The offshore Chinese yuan (CNH) currency pair is influenced by Beijing’s market-friendly policies as well as the lessening of COVID-19 worries. China Vice Premier Liu He pressed for steps to bolster the economy in the first quarter on Wednesday (Q1). His remarks provided a significant upward push to local markets, as well as boost to commodities and Antipodeans.

Furthermore, after renewing the record statistics over the weekend, China announced a second day of easy covid numbers. According to Reuters, “China announces 1,317 confirmed COVID cases on March 16 vs 1,952 the day before.” Elsewhere, Kyiv’s rejection of recommended neutrality in the 15-point peace plan, as well as the International Court of Justice’s injunction to Russia to halt its invasion of Ukraine, test mood, but the continuance of negotiations and Moscow’s recently light tone, kept markets upbeat.

It’s worth mentioning that the Fed’s rate rise and hawkish dot-plot, together with uncertainties about the Russia-Ukraine peace treaty, have recently posed a challenge to the pair seller.

Among these bets, Chinese and Japanese stocks top Asia-Pacific bulls, while US 10-year Treasury rates fall 3.5 basis points (bps) to 2.15 percent, reversing from their highest levels since May 2019.Looking forward, USD/CNH traders will focus on risk triggers for new impulse, while second-tier US data on housing, employment, and manufacturing may also entice traders. A decisive U-turn from the 200-DMA, at the latest around 6.4115, drives USD/CNH bears towards January’s low at 6.3235. However, the 50-day moving average (DMA) may provide sellers with an immediate pause at 6.3480.