USD/CNH: Guided lower by fix – OCBC

USD/CNY continued to trade with a heavy bias, guided lower by PBOC fix – now under 7.09. USD/CNH was last at 7.0998, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bearish momentum on daily chart intact

"The Bloomberg consensus for fix to PBOC fix has also narrowed to 1month low – implying that market expectations have started to align more with the fix guidance. The shift from defensive stability to guided appreciation is likely a theme that should continue."

"Bc but RSI shows tentative signs of turning from near oversold conditions. Support at 7.0850, 7.08 levels. Resistance at 7.10, 7.12 levels. Meanwhile, stronger RMB can help anchor relative strength in some Asian FX, including MYR, SGD."