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How CNY influences other currencies??

Discussion in 'Beginners Bootcamp' started by Faruque Rahman, Apr 10, 2011.

  1. Faruque Rahman

    Faruque Rahman Recruit

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    Dear Forex Experts,

    I am a newbie in forex trading. We all know that news is very important for forex trading. I wanna know about a concern and that i Chinese(CNY) currencies. I wanna know how CNY influence to other currencies?? Actually how Chinese news influences other currencies?? For example If chin has a good economic news, then which currencies will effects??

    Please explain about this concern clearly.

    Regards
    Faruque Rahman
     
  2. Pharaoh

    Pharaoh Colonel

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    Beyond the obvious affects on CNY pairs (which trade in a limited range), it can get a little murky. If China does well, this makes it more competitive with other countries - which is bad for the currency of those countries. China is also a major business partner of those same countries, so China doing well would mean more business with those countries - which is good for the currencies of those countries.

    One less obscure option - look at currencies closely tied to raw materials exports (the Aussie Dollar qualifies well if memory serves). If Chinese industrial orders are up, they need raw materials to make all that stuff and have to buy it all from somewhere.
     

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