In order to stop the economic slowdown, the Chinese financial authorities are ready to reconsider their monetary and budget policies. At the same time, the Chinese government is determined to back those reforms and to make then national currency more flexible in order to take it one step closer to a free floating currency, Market Leader reports.
On April 9th, the NDRC of China made a statement. The statement says that the authority is ready to toughen the control over regional lending and to fight illegal schemes of attracting funds. At the same time, China seems determined to switch from dynamic economic growth based on export to more stable growth based on domestic consumption.
China strives to curb inflation. This is confirmed by the NDRC report. It also concerns the goals that should be reached by 2016. Some of those goals are to curb inflation and to keep financial markets liquid through maintaining interest rates within an acceptable range.
The authority also confirms that the Chinese government is willing to start turning the Renminbi into a free floating currency (probably in order to further make it global reserve currency). The first step is to increase he acceptable daily range of exchange rate deviation.
According to the comprehensive technical analysis conducted by Masterforex-V Academy, the Chinese Yuan keeps losing value against the US Dollar as USDCNY is rallying within the scope of a long-term rally. At this point, the price is developing wave 5/A of level Daily, the experts report.
The closest major level of resistance is the local high located at 6,2321. At the same time, the closest major levels of support are the bottom of the MF sloping channel and the MF pivot located at 6,10. Still, they are too far from the current price to take them into consideration at this point.
