Does any one please know how to report the purchase and sell of foreign currency (CNY). Should it be 1040? I can't locate a place to add additional 1040 income.

Yes.  All taxable income is reported on form 1040. 

These would be considered Section 1256 Contracts and Straddles. 

To enter them in TurboTax you would select the following:

1. Income
2. Contracts and Straddles under Investment income