Ivan Zhigalov
The People’s bank of China and the Reserve Bank of Australia have recently signed a bilateral agreement while implies a national currency swap to the amount of 200B CNY (Renminbi) or 30B AUD. The agreement will take effect till 2015. However, its prolongation is fairly likely.
It should be noted that since 2008 China has already signed 17 agreements with Korea, Malaysia, Belarus, Argentina, Turkey etc. The total amount is 1.5 trillion Renminbi.
Australia is the world’s 3rd country after the USA and Canada which holds a lot of Renminbi in its currency reserves. Since 2008 over 10B CNY has been “exported” annually.
USDCNY is currently forming a downswing – wave с(С) Н2 inside С Н10/15. In order to continue the downtrend, the price will have to break below 6,287. The bullish scenario will take effect only after the price breaks the top of the MF sloping channel and pivot 6,3151. A break above 6,346 will trigger an upswing of wave level Daily of higher.
Ivan Zhigalov
