U.S. Dollar Dragged Down By The Data, The Central Parity Of RMB Three Consecutive Liters

Due to the continued weakening trend of the US dollar index overnight, the central parity of RMB against the US dollar increased today for third consecutive days.

According to the foreign exchange trading center, the RMB exchange rate in the domestic inter-bank foreign exchange market was set at 6.1405 in October 29th, up 16 basis points from the previous day.

Market participants pointed out that although the weakness of the US dollar makes the short-term RMB exchange rate trend strong, the domestic economic prospects will still restrict the RMB appreciation.

Tuesday, international market

Third consecutive trading days softened.

Before the Fed is about to issue a policy decision, investor sentiment is still cautious. Everyone is cautious about the future policy of the US Federal Reserve, which limits the US dollar index's upward bound.

Meanwhile, two data on durable goods orders and big city housing prices released earlier in the day showed weakness in the US, and the dollar index collapsed.

Durable goods

The US durable goods orders rate decreased by 1.3% in September, with an expected growth of 0.5% and a decrease of 18.3% in the previous year.

In addition, the US house price index for S&P/CS20 cities in August increased by 5.57% annually, with an expected growth of 5.7%. The US House index in August was 0.15% lower than that in the big cities of August, with an expected growth of 0.2%.

The US dollar index ended in a tight session in New York during the above data situation, but since then, the US consumer confidence index has improved to a 7 year high level, which has led to a partial decline in the US dollar index.

At present, the focus of investors remains the Fed's interest conference.

According to previous forecasts, the Fed will end the two-year QE3 purchase of debt since the end of 2012.

Although it is generally believed that QE will not quit again, many investors believe that the Federal Reserve will stick to a relaxed policy stance at this meeting, and will continue to maintain ultra-low interest rates close to zero after the end of QE.

In addition to its decision to end quantitative easing measures (QE) and expectations for future interest rate policy, the divergence of opinion within the Fed will also be a major concern of analysts from all walks of life.

If the result of the vote shows that the internal differences of the Fed's decision makers are increasing, there will be more variables in their future policy prospects.

domestic

Yesterday, the spot exchange rate of RMB against the US dollar rose further under the guidance of the middle price increase, reaching the highest level of 6.1120 in the intraday market and rewriting the new 7 month high since March 10th.

Market participants pointed out that under the background of short-term disadvantaged US dollar, the recent RMB exchange rate trend is stable and strong. The guidance of the intermediate price and the reduction of the central bank's purchase of US dollars in the foreign exchange market make the RMB settlement slightly prevail. If the US dollar does not show a big rebound, we fear that the RMB exchange rate will continue to break up, and breaking through the 6.11 pass is a big probability event.

However, in the long run, due to the uncertain economic growth prospects and the balance of payments, the momentum of RMB appreciation is not enough.