I am far from an expert on why the CNH/USD currency pair and gold had traveled so well together. But I do have eyes and can see that they have traveled together in the recent past. Another thing I can see is that CNH/USD traveled well with the Q1 2019 upturn in China/EM in nominal terms and in relation to the US. That’s not shown on this chart, but it is so.
So beyond the positive implications for the gold mining sector, if gold is leading CNH/USD upward here it would eventually work out positive for a ‘global vs. US’ stance. This could manifest in global not being as weak in a bear or being stronger in a bull. It especially seems to favor Emerging and Frontier markets.
CNH/USD appears in a potential bottoming stance not so much due to the price chart, which is at support, but more due to the constructive looking RSI & MACD.
Bottom Line: If gold is leading CNH/USD, it could also be leading the relative performance of global markets to the US market.
