Chinese Yuan: Gradual strengthening against US Dollar toward 6.7300 – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann reports USD/CNH slipped to 6.7459 after failing to extend a modest bounce, with limited downside momentum. Intraday, they see potential to test last week’s 6.7420 low but doubt a sustained break below.
On August 3, 2021, United Overseas Bank (UOB) reported that the USD/CNH exchange rate slipped to 6.7459 after failing to extend a modest bounce. Analysts Quek Ser Leang and Lee Sue Ann noted that while the currency pair has the potential to test last week's low of 6.7420, a sustained break below this level remains unlikely. In the short term, they expect the pair to continue edging lower towards 6.7300 as long as the strong resistance level of 6.7640 holds.
A break above 6.7550 would indicate that the current downward pressure has eased. Over the next three weeks, the analysts maintain that USD could continue to decrease towards 6.7300, as long as the 6.7640 resistance level is not breached.
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