HKD and the Chinese Currency?

[Dr_Who]

Does any forex guys here know if the Hong Kong Dollar goes in the same trend to the Chinese currency or is it floated separately?

If the Chinese currency is re valued and goes up, will the HKD also go up at the same rate as the chinese Renminbi?

Cheers
Doc

[peat]

wouldnt appear to be any correlation in the movements Dr.

[peat]

looks like the CNY has started to move already.... but I wouldnt assume its a one way bet.

[Dr_Who]

Thanks Peat. Odd that they dont correlate since the HK economy minors that of the Chinese economy. Do you think the re valuing of the Chinese currency will also have a positive effect on the HK dollar?

How would one benefit and make some dosh from the long term upward movement of the Reminbi?

[peat]

yeh I agree that one would think they would correlate at least to some extent. Both are highly managed but by different authorities

To profit from appreciation of the renmimbi sell USD /CNY a pair that is offered on Oanda FXTrade (as per my chart )
Seems too obvious to me but could work out.