USD/CNH explained: the offshore yuan, and how it differs from CNY
China's currency trades in two places at once. The yuan inside China is tightly managed. The one traded abroad, CNH, moves more freely, and the gap between them tells a story.
At a glance
| Item | USD/CNH |
|---|---|
| What it is | How many offshore Chinese yuan one US dollar buys |
| Pip size | 0.0001 |
| One pip is worth | 10 yuan per standard lot of 100,000 dollars, converted at the current rate |
| Busiest hours (ET) | About 8 pm – 4 am (the Asian day) and 8 am – noon (New York morning) |
| What moves it most | The PBoC's daily fixing, the broad US dollar, Chinese data, US–China trade news |
| Trading hours | Sunday ~5 pm ET to Friday 5 pm ET |
US retail leverage is capped at 20:1 here. Many US brokers list USD/CNH, but not all. Check yours.
CNH vs CNY
| CNY (onshore) | CNH (offshore) | |
|---|---|---|
| Where it trades | Inside mainland China | Outside it, mainly Hong Kong |
| Rules | Can move only 2% either side of the daily fixing | No band, set by the offshore market |
| Who trades it | Mostly onshore banks and firms | Global banks, funds, retail brokers |
Retail forex brokers offer CNH. When CNH trades well away from CNY, it's a sign of pressure on the yuan.
What moves it
The daily fixing. Each trading day, the People's Bank of China (PBoC) sets a midpoint for USD/CNY at about 9:15 am Beijing time. That's 9:15 pm ET the evening before in summer and 8:15 pm ET in winter. Traders compare it with what models expected. A fixing much stronger or weaker than expected is read as a signal.
The 2% band. Onshore CNY can't move more than 2% from the fixing. CNH has no band, but it rarely strays far for long.
The broad dollar. A strong US dollar day usually lifts USD/CNH too.
Chinese data. Monthly trade figures, inflation, factory surveys (PMIs) and credit data all matter.
US–China news. Tariff and trade headlines can move the yuan within minutes, even on weekends.
When it's busiest
Beijing is 12 hours ahead of New York in summer and 13 in winter. China doesn't change its clocks.
- About 9 pm ET: the fixing lands (8 pm ET in winter).
- 9 pm – 4 am ET: the Asian day, with Chinese data.
- 8 am – noon ET: New York adds dollar news.
Its personality
- Managed, then sudden. The yuan can be steered for months, then shift fast when policy changes. In August 2015 a surprise change to the fixing method moved it more in a few days than it had in years.
- Smaller daily moves than most emerging-market pairs. Policy keeps it calm most days.
- A barometer for Asia. The yuan often moves with the Australian dollar and other Asian currencies. See AUD/USD.
- Swap costs depend on the rate gap. Check your broker's Swap (rollover) rates for both sides.
Reading it with our method
- Start on the daily chart. Mark the last places price turned around. Is the dollar making higher highs and higher lows against the yuan?
- Know the fixing. Note where the fix came in versus the day before. It often sets the tone for the Asian session.
- Body-close rule. Only a candle body closing past a level counts. Headline spikes don't.
- Size from the stop. USD/CNH stops are often modest in pips. The lot size calculator turns your stop into a size so risk stays fixed.
Common mistakes
- Treating it as a free-floating major. Policy shapes this pair. A level can hold because the PBoC wants it to.
- Holding through weekend trade news. Monday can open far from Friday's close.
- Ignoring the fixing time. At 9:15 pm ET (summer), a calm chart can jump.
- Oversizing a quiet chart. Calm days don't mean low risk. Keep the same 1% risk.
Questions
What's the difference between CNY and CNH?
CNY is the yuan traded inside mainland China, within 2% of the daily fixing. CNH is the same currency traded offshore, mainly in Hong Kong, with no band.
What time is the yuan fixing?
About 9:15 am Beijing time. That's 9:15 pm ET the evening before in summer, and 8:15 pm ET in winter.
Is the Chinese yuan pegged to the dollar?
Not strictly. It's managed: the PBoC sets a daily midpoint and onshore trading must stay within 2% of it. Offshore CNH floats around that.
Can I trade the yuan with a US forex broker?
Many list USD/CNH at up to 20:1 leverage. Check your broker's list and spreads.
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