Forex reserves in China was falling in November; USD/CNH is on bullish breakout
The China reserves rose by $11.39 billion in October during short-time recovery it was decline in November because of the following:
- expectations of the US rate hike, and
- slowing economic growth.
Forex reserves in China was falling by $87.22 billion to $3.438 trillion at the end of November, the People’s Bank of
China said, and it is the lowest level since 2013 when the reversed were $3.395 trillion.
Policy makers are continuing evaluation of the reserves after devalued the yuan in August just to monitor the possibility for the further weakening of Chinese currency because People’s Bank of China does not want for yuan to fall dramatically.
As we see from the chaft above - CNH was strengthening since mid September till the end of October - the price was on the secondary correction within the primary bullish condition with 6.3147 key support level which was not broken: the price started to be bounced from this level for the bullish breakout in November with 6.4608 resistance level to be broken. And the next bullish target is 6.5923 resistance level which is likely to be broken in the end of this year or in Q1 2016 for example.
