USD/HKD hits 1-year high on weak Chinese economy and rising interest rates

USD/HKD hits 7.80 for the first time since Sep 2011.it is expected to go up further in the coming months.

• The combination of US interest rate hike and slow down in Chinese economy is expected to put more pressure on Hong Kong economy and HKD this year .
   
• Hong Kong's major trading partner is China with total trade amounted to 52.2% in 2014. HKD has been pegged to the US dollar, and a rally in US Dollar has made Hong Kong exports less competitive.
   
• The pair is expected to trade higher due to weak Chinese economy and Yuan depreciation.