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 a 1–3 week horizon, they expect the pair to continue edging lower toward 6.7300 as long as 6.7640 strong resistance holds, while a move above 6.7550 would ease current pressure.

Soft downside bias with nearby supports

"24-HOUR VIEW: We indicated yesterday that USD “is likely to trade between 6.7500 and 6.7620.” However, after edging to a high of 6.7597, USD dropped to a low of 6.7459. While downward momentum has not increased much, USD could test last week’s low, near 6.7420. A continued decline below this level is unlikely. On the upside, a break above 6.7550 would indicate that the current downward pressure has eased."

"1-3 WEEKS VIEW: Two days ago (03 Aug, spot at 6.7490), we highlighted that while USD edged lower last week, “there has been no clear increase in downward momentum.” However, we were of the view that USD “could continue to edge lower toward 6.7300 as long as 6.7640 (‘strong resistance’ level) is not breached.” Our view remains unchanged."

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