CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

USD/CNH: Testing 7.3000 as Yuan Faces Fresh Tariff Headwinds

Article By: ,  Market Analyst
  • Trump doubles China tariffs to 20%, on top of existing levies
  • PBoC fixes yuan stronger, pushing back against market pressure
  • USD/CNH tests 7.3000, with momentum signals favouring upside

Summary

An additional 10% tariff on Chinese imports entering the United States has put the Chinese yuan on the back foot against the U.S. dollar, accelerating the USD/CNH bullish breakout that began earlier this week. However, after briefly pushing above the key 7.3 level in early Asian trade, the yuan has since pared losses, suggesting Chinese authorities may be stepping in to prevent a deeper slide.

10 Plus 10

U.S. President Donald Trump announced the new tariffs starting March 4, doubling the existing duty imposed earlier in the month. He linked the move to China’s role in the fentanyl trade, arguing that cartels use Chinese components to manufacture the drug smuggled into the U.S.—a claim China disputes.

The unexpected escalation in trade tensions raises the risk of a stronger retaliatory response from Beijing, beyond the measures announced earlier this month.

4

USD/CNH Bullish Break Stalls at 7.3000

Source: TradingView

As seen throughout Trump’s presidential campaign and return to office, the yuan weakened on the news, pushing USD/CNH toward key resistance at 7.3000. For now, that level is holding firm, aided by the PBoC fixing Friday’s onshore yuan midpoint at 7.1738, well below the 7.2873 level implied by market forces.

With the 50-day moving average near 7.3000, this level carries technical significance, offering a setup for fresh trades depending on price action. RSI (14) and MACD continue to signal bullish momentum, favouring further upside.

A break above 7.3000 and 50DMA could open the door for longs targeting a retest of the February 12 high around 7.3250, with 7.3750 after that. A stop below 7.3000 would provide protection. Conversely, if 7.3000 continues to cap gains, the setup could be flipped. USD/CNH did some work around 7.2700 earlier this month, making it an area of interest, with more substantial support seen near 7.2345.

-- Written by David Scutt

Follow David on Twitter @scutty

 

How to trade with City Index

You can trade with City Index by following these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    Open an account in the UK
    Open an account in Australia
    Open an account in Singapore

  2. Search for the market you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2025