Trading around the yuan's managed float: what do you watch?

FTC Community TeamStaff94 views

The PBOC sets a daily midpoint for the yuan and lets it trade within a band, intervening when needed. Trading USD/CNH or the commodity pairs off China requires reading the fix and the intervention signals.

Trading around the yuan's managed float: what do you watch? — risk-reward diagram
A risk-reward ratio of 1 to 2

How do you approach it?

  • the fix and the signals you track
  • which instruments you use to express China views
  • the managed-float surprise that caught you
Trading around the yuan's managed float: what do you watch? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The commodity currencies guide covers the China-AUD channel.

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