Chinese Yuan: Outlook stays mildly positive against US Dollar – UOB
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH price action as fading in downside momentum and now largely range-bound between 6.6900 and 6.7000 in the short term. Over 1–3 weeks, they still warn that a break and close below 6.6900 could trigger a move toward 6.6800. On a 1–3 month view, they expect the pair to keep edging lower while below 6.7815.
UOB strategists Quek Ser Leang and Lee Sue Ann assess the current outlook for the Chinese Yuan (CNH) against the US Dollar (USD) as mildly positive, with price action showing a fading downward momentum. At present, the pair is ranging between 6.6900 and 6.7000 in the short term. Analysts caution that a break and close below 6.6900 could spark a move downward toward 6.6800.
In the 1-3 week timeframe, they expect USD/CNH to continue its downward trend if the price stays below 6.7815. Following a sharp decline last Friday, the 24-hour outlook highlights a potential drop below 6.6900 for USD, but the analysis emphasizes that holding below 6.6985 is crucial for sustaining downward momentum. Despite the decline, USD recovered to close at 6.6950, showing a 0.02% increase.
The analysts believe that the current price movements are part of a range-trading phase, and the pair is likely to remain between 6.6900 and 6.7000 in the short term.
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