USD/HKD Spot To Consolidate Recent Gains

http://www.fxfxfx.com 2010-01-22 08:57:31

USD/HKD spot to consolidate recent gains, but remains supported above 7.7676 (23.6% retracement of high-low range from 2007) after strong China data prompt PBOC tightening expectations, hence triggering further outflows, said trader. 'The upward momentum of the pair is likely to last for weeks. I''''ve spotted both local and foreign banks buying the U.S. dollar actively now and the pair may hit 7.770 this week,' said another trader, tipping 7.7670-7.7710 range for today. 'The market move of the last week reflects some of that liquidity (from China) being withdrawn as investors track the policy moves of the PBOC,' says SocGen strategist Patrick Bennett. Tips spot could rally further, 7.7800 or even 7.8000 in overall environment of USD strength, higher Chinese bill yields. Dow Jones technical analysis shows immediate USD/HKD support now 7.7676 (23.6% retracement of high-low range from 2007), then 7.604

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Keywords：USD HKD