USD/CNY trades higher on Chinese economic slowdown, jump till 6.525 is possible

China's Yuan fell to its four and half year low on account of weak Chinese economy and expectations of a U.S interest rate hike.

• USD/CNY has climbed up to 6.4583 this week from 6.400 which would be highest weekly depreciation since the week of surprise devaluation on Aug 11.
   
• The PBOC set its daily guidance rate at its weakest level since August 2011. 
   
• "A U.S. rate hike would have a major impact on money flows out of emerging markets including Hong Kong and China," said Linus Yip, chief strategist at First Shanghai Securities.
   
• Technically the pair has broken 6.4485 (Oct 10th high) and is expected to reach till 6.527/6.60 level.
   
• The weakness can be seen only below 6.318 level.