Chinese Yuan Trades Sideways with Firmer Bias Against US Dollar
United Overseas Bank (UOB) strategist Quek Ser Leang reported that the offshore Chinese yuan (USD/CNH) experienced a slight decline, reaching a low of 6.7008 before closing at 6.7041. The pair's intraday price action is expected to remain within a narrow range of 6.7000 to 6.7105. Looking ahead to the next 1-3 weeks, Quek anticipates the pair will stay confined within a broader range of 6.6950 to 6.7270.
On a longer-term horizon of 1-3 months, Quek expects the USD/CNH to continue edging lower as long as it trades below the cloud’s upper boundary near 6.7815. The strategist noted that the recent downward momentum is insufficient to indicate a sustained decline, suggesting a sideways trading pattern for the near term.
In their previous outlook from last Tuesday (29 Sep, spot at 6.7110), UOB highlighted that they expected the USD to trade within a range of 6.6950 to 6.7270. This view remains unchanged, indicating a cautious but stable outlook for the yuan against the US dollar.