RMB & USD impression

Fundamental for today:
Jan 30, 15:00 GMT United States !! Consumer Confidence 109.00 p 109.50 p
Jan 31, 00:00 GMT Australia ! New Home Sales -5.30 %

I won't expect something specticular like a move of 100 pips... except on the FOMC Minutes and the NFP. The fate of the USD, all depends on the results. :)

Ahh... Forex market is in it's mood swing... What better way to do is to surf the internet, and start reading up, revealing the hidden mystery to my question.... It might be boring, and not worth the time to read...

I came Rob Kirby latest article on question on the possible answer to the big China / USD questions: How can China continue to add to its hoard of US bonds without ending up with giant worthless piles of paper as the dollar depreciates? How can the dollar go into freefall without seriously damaging the foreign (US Dollar) reserves of China? I really love the done up summary on the China USD stuff, which is well done up by Robert Chamber's Blog.

What Robert said in his blog had truth in it. Using bonds as margin to purchase future commodities, passing risk to commodities manufacturing companies, and converting this raw material into value added finished goods. Having a long term vision, reducing currency risk and ultimately having the power to monopolise and control the market.

But, i don't think RMB is going to appreciate fast, as it still needs it's manufacturing product to be exported out. If RMB appreciated too fast, just like the Euro dollar, we will be seeing more China workers being layoff, due to cutting of cost of production.

After reconsidering all this elements, what the Fengshui Master Khoo said might be true, in the metal industries in China will grow. Hmmm..... Interesting indeed.