USD/CNY repair continues to return in barely softer (and beneath spot) for the entire week, final seen buying and selling at 7.2057 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Gentle bearish momentum on day by day chart intact
“This morning repair was set at 7.1938 (vs. 7.1963 yesterday). We consider policymakers are more likely to nonetheless undertake a measured method to appreciation (if any) like how they took a measured method when USD/RMB was buying and selling greater beforehand. Sustaining RMB stability is a key goal for policymakers.”
“Any sharp RMB appreciation might set off exporters speeding to promote their USD holdings and that cycle (if it occurs) might lead to extreme RMB power and volatility, which isn’t fascinating for policymakers at this level. USD/CNH continued to commerce in subdued vary.”
“Gentle bearish momentum on day by day chart intact whereas RSI was flat. 2-way trades probably. Help at 7.18 earlier than 7.1475 (61.8% fibo retracement of 2024 low to 2025 excessive). Resistance at 7.2200/30 (200 DMA), 7.25 ranges.”
