Chinese Yuan Hits 1-year Low Against European Currency

During early Asian deals on Wednesday, the Chinese yuan plunged to a 1-year low against the European currency. On the other hand, the yuan edged higher against the US dollar.

The Chinese yuan showed strength against its US counterpart during Wednesday's early Asian session. The yuan rose to 6.8265 against the dollar, compared to 6.8280 hit late Tuesday in New York. The immediate resistance for the Chinese currency is seen around the 6.825 level.

The Chinese Yuan edged down to a 1-year low of 10.1239 against the European currency during Wednesday's early Asian deals. The next downside target level for the Chinese currency is seen around 10.35. The euro-yuan pair that closed Tuesday's deals at 10.1026 is currently trading at 10.11.

The People's Bank of China has set today's central parity rate for the dollar-yuan pair at 6.8271 and the euro-yuan pair at 10.0959.

In the European session today, the French consumer spending, business Confidence indicator and the purchasing manager index from the major euro-zone economies for September are scheduled to be released.

From the U.S., the Energy Information Administration is scheduled to release its weekly petroleum inventory report at 10:30 am ET.

Traders are keenly awaiting for the outcome of US Federal Reserve's latest policy meeting, which is expected to conclude today at 2:15 pm ET. While most analysts expect the Fed to leave its target range for the federal funds rate unchanged at 0.0 to 0.25 percent, traders will be keeping a close eye on the accompanying statement for any indications of future rate hikes.