Dollar Slips as Yuan Gains Strength Toward Key Support Level

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Chinese Yuan has been gaining strength against the US Dollar. In their report, they note that USD/CNH slipped to 6.7166 and closed slightly lower. However, they maintain a negative view on the Dollar against the CNH since early August.

The analysts flag 6.7000 as the next level to watch if 6.7200 gives way. They emphasize that this is contingent upon the prevailing momentum, which suggests a possible decline in the Dollar. UOB had previously identified strong resistance at 6.7300, and they maintain their view as long as the Dollar holds below this level.

In their analysis for the next few weeks, Quek Ser Leang and Lee Sue Ann indicate that downward momentum continues to increase. If the Dollar breaks and holds below 6.7200, the analysts believe the next level to watch is indeed 6.7000. They base their forecast on the ongoing price action.