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What is the value of USD (US Dollar) / CNY (Chinese renminbi) on Thursday August 6, 2020

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Get the latest mid-market rate for USD (US Dollar) / CNY (Chinese renminbi) for Thursday August 6, 2020 right here. 

The latest rates for USD (US Dollar) / CNY (Chinese renminbi)  are available below. As a leading finance news site the team at Born2Invest collates and analyses the latest Forex Market data to bring you live information to help you make the right forex trading decisions. 

Thursday August 6, 2020 1 USD (US Dollar) is worth 6.951299 of CNY (Chinese renminbi) 

Remember to always trade with a reputable broker. It’s also possible to apply forex concepts to cryptocurrency trading.

Forex pairs explained

Forex trading is inherently risky and there are countless forex pairs to choose from. The only way to make a profit from forex trading is to understand how the market works. Luckily for you the Born2Invest forex team has collated some forex trading tips to get you started.

Forex trades are always made using currency pairs. Whenever you buy one currency you are selling another. In every pair there is a base currency, for example USD (US Dollar) and a quote currency, which would be CNY (Chinese renminbi).

The price of a currency pair represents the amount of quote currency, or CNY (Chinese renminbi), that you will need to spend in order to purchase a single unit of USD (US Dollar), the base currency. So using the current example you would need to spend 6.951299 of CNY (Chinese renminbi) in order to purchase 1 USD (US Dollar).

The three types of forex pairs

Forex pairs can be broadly separated into three categories; the majors, the commodity currencies, and the cross currencies:

  • Major currencies are the most traded currencies on the market. Which currencies make the cut will vary, but almost all lists will include EUR/USD, USD/JPY, GBP/USD, and USD/CHF
  • Commodity currencies are currency pairs where their value is closely tied to a commodity such as oil, coal, or iron ore. Examples include AUD/USD and USD/CAD
  • Cross currencies are currency pairs which don’t include USD. Examples include EUR/GBP and EUR/JPY.

How is cryptocurrency trading different from forex trading?

Cryptocurrency trading shares many similarities to forex trading. Specifically the concepts of currency pairs and high price volatility. That being said there are some key differences. Cryptocurrencies don’t operate like fiat currency and many are tied to a project or product. The crypto market is also highly unregulated, which makes it inherently risky compared to trading forex.

Additionally most cryptocurrency trades happen on exchanges. These are generally unregulated and come with a certain degree of risk that many investors would find unacceptable. One alternative is to trade using a CFD broker which allows crypto pairings, but this means you will not directly own and cryptocurrency you buy.