China guides measured yuan appreciation as USD/CNH nears lows, OCBC says
OCBC strategists note that Chinese policymakers are allowing a gradual renminbi advance while using a sizeable daily fix to prevent the currency from strengthening too quickly.
USDCNH
USD/CNH is trading close to its recent lows, according to OCBC strategists Sim Moh Siong and Christopher Wong.
They note that Chinese policymakers are tolerating a measured pace of renminbi appreciation rather than trying to halt it. At the same time, the daily fix is being kept sizeable, which appears aimed at limiting overly rapid moves in the pair.
This combination points to a managed, gradual strengthening path for the yuan, with officials pushing back against excessive volatility rather than defending a specific USD/CNH level.
Source: FXStreet Forex News