USD/CNH will continue to move higher after it broke out

The pair will continue to move higher after it broke out from a downtrend channel resistance line. The US Federal Reserve hold onto its current benchmark interest rate of 1.75%. Fed Chair Jerome Powell said America’s economic outlook had gotten stronger. This was amid the signing of the phase one trade deal between the United States and China. However, the central bank might reassess this claim following the economic threat posed by coronavirus. The COVID-19 began to make headlines in mid-January. The virus originated from Wuhan, China and many analysts warned of its economic implications. The US is a tourist destination for many Chinese nationals. There are 2.84 million Chinese who visited America in 2019 and projection shows it will boom to 3.52 million by 2024. However, the effect on China’s economy will be bigger. The sluggish Chinese economy will further slow with the spread of coronavirus.