USD/CNH Price Analysis: Inches closer to 7.0900 after PBOC rate cut

• USD/CNH surges after PBOC cuts one-year, five-year loan prime rates.
• Sustained trading beyond 200-HMA, propels the quote towards 61.8% Fibonacci retracement.

USD/CNH extends the early-Asian session rise to 7.0850, up 0.12% on a day, after the PBOC announced rate cuts on initial Monday.

The People’s Bank of China (PBOC) cut benchmark prime lending rates for one-year and five years each by 25 basis points (bps) in its latest monetary policy decision.

Read:

In addition to the upbeat fundamentals for the pair, sustained trading beyond 200-HMA also pushes the quote further north towards 61.8% Fibonacci retracement of April 02-10 downside, at 7.1020.

However, 7.0900 psychological mark could offer intermediate rest during the pair’s further rise.

Meanwhile, a downside break of 200-HMA, currently near 7.0650 may take rest on 23.6% Fibonacci retracement level of 7.0615 ahead of revisiting the monthly lows near 7.0370.

USD/CNH hourly chart

Trend: Bullish