United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann are maintaining a bearish outlook on the US dollar against the offshore Chinese yuan, following Wednesday’s sharp move lower. The USD/CNH pair dropped to an intraday low of 6.7180 before settling near 6.7210 at the close, marking continued weakness in the greenback against China’s currency. The strategists’ downside bias suggests they expect further dollar losses ahead, with 6.7200 emerging as a key technical level to watch. This movement comes as traders reassess US-China dynamics and broader dollar positioning amid shifting monetary policy expectations between the Federal Reserve and People’s Bank of China. The offshore yuan’s strength reflects renewed confidence in Chinese assets and potentially improving economic data from the mainland. Traders in Asian FX markets should monitor this level closely as a sustained break could trigger additional dollar selling against the yuan.
FXnCO Insight
Watch for USD/CNH to test support at 6.7200, as a clean break below could accelerate dollar weakness and present shorting opportunities in the pair.
Source: FXStreet