USD/CNH hits 6-week high on US-China tussle
- USD/CNH jumps to the highest level since March 20.
- Markets offer Yuan as the US steps up anti-China rhetoric.
The offshore Yuan (CNH) is flashing red with the US ratcheting up anti-China rhetoric to shift responsibility for the COVID-19 crisis.
The USD/CNH pair rose to 7.1557 early Monday, the highest level since March 20, when the pair hit a high of 7.1622. At press time, the spot is trading near 7.1380, representing modest gains on the day.
While the US intelligence on Sunday accused China of hiding the severity of the coronavirus crisis to stock up medical supplies, the Secretary of State Mike Pompeo said that that country was responsible for the pandemic.
Further, President Trump said a few minutes before press time that tariffs would be an "ultimate punishment" on China.
China has responded to the allegations by stating that Secretary Pompeo's anti-China bluff strategy reveals an all-or-nothing mentality to fool US voters. China's Global Times said, “the truth is that Pompeo does not have any evidence, and during Sunday's interview, he was bluffing.”
Political experts, however, believe the Trump administration would continue to step up its anti-China rhetoric while heading into Presidential Elections in an attempt to deflect criticism at home.
The number of coronavirus-related deaths in the US reached 66,369 as of Saturday night, with total infections at 1,132,539, according to the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University.
Technical levels