The Chinese yuan is poised to strengthen further against the US dollar in coming weeks according to United Overseas Bank currency strategist Quek Ser Leang. The offshore yuan pair USD/CNH is expected to decline toward the 6.7300 level over the next one to three weeks, provided resistance at 6.7640 remains intact. In the immediate term, the pair is trading slightly higher within a developing range with intraday movement anticipated between 6.7500 and 6.7620.
The forecast signals continued yuan appreciation despite near-term consolidation, a development that could impact Asian currency positioning and China-exposed portfolios. Traders holding long dollar positions against the yuan should monitor the 6.7640 resistance level closely, as a break above would invalidate the bearish outlook. The strengthening yuan trend reflects evolving dynamics in China’s economic recovery and capital flows.
FXnCO Insight
Watch 6.7640 as the critical pivot point—failure to breach this resistance keeps yuan strengthening bias intact toward 6.7300, favoring short USD/CNH positions on intraday rallies.
Source: FXStreet