Chinese Yuan: Upside bias within defined band against US Dollar – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as holding largely unchanged, but with a slight increase in downward momentum. Intraday, they see the bias tilted lower toward 6.6950, with resistance at 6.7055 and 6.7100 and a clear break below 6.6950 deemed unlikely. Over 1–3 weeks, they expect USD/CNH to trade between 6.6950 and 6.7270, while over 1–3 months they anticipate gradual downside as long as it stays below the cloud near 6.7815.

Dollar-Yuan bias leans lower

"24-HOUR VIEW: We stated yesterday that USD “could edge higher,” but we held the view that it “is likely to stay within a 6.7000/6.7100 range.” USD subsequently rose to 6.7095, declined to 6.7015 before closing largely unchanged at 6.7027 (+0.02%). The slight increase in downward momentum suggests the bias is tilted to the downside toward 6.6950. A clear break below this level is unlikely. Resistance is at 6.7055, followed by 6.7100."

"1-3 WEEKS VIEW: In our most recent narrative from last Tuesday (29 Sep, spot at 6.7110), we highlighted that “for the time being, we expect USD to trade in a range between 6.6950 and 6.7270.” We continue to hold the same view for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)