UOB Sees Yuan Gradually Strengthening Toward 6.7300 vs Dollar
USD/CNH slipped to 6.7459; analysts see a test of last week’s 6.7420 low but doubt a sustained break, eyeing a move to 6.7300.
The Chinese yuan extended its advance against the US dollar, with USD/CNH falling to 6.7459 after failing to extend a modest bounce. Analysts at United Overseas Bank (UOB) noted limited downside momentum but see scope for a test of last week’s low at 6.7420 in the near term.
However, they are skeptical of a sustained break below that level, pointing to a gradual grind lower toward 6.7300. The pair’s inability to hold rebounds reinforces the near-term bearish bias.
The commentary comes as the offshore yuan benefits from a softer dollar tone and cautious optimism around China’s reopening momentum.
Source: FXStreet Forex News