**Chinese Yuan Range Trade Persists Despite Mild Momentum Shift Against Dollar**
UOB currency strategist Quek Ser Leang reports the US Dollar has experienced slight downward momentum against the offshore Chinese yuan, but the pair remains locked in range-bound trading. The Singapore-based bank has adjusted its intraday trading band lower to 6.7820–6.7940 for USD/CNH, reflecting the modest yuan strength. However, UOB maintains a neutral outlook for the one-to-three-week horizon, expecting the currency pair to oscillate between 6.7750 and 6.8080.
The assessment comes as traders continue navigating uncertainty around US-China economic relations and Federal Reserve policy direction. The narrow trading range suggests market participants are awaiting clearer catalysts before establishing directional bets. Currency volatility remains subdued despite periodic momentum shifts, with neither bulls nor bears gaining sustained control.
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FXnCO Insight
** Traders should maintain range-trading strategies on USD/CNH with tight stops outside 6.7750–6.8080 boundaries until a confirmed breakout materializes.
Source: FXStreet