PBoC Fix Clusters Around 6.79: Two-Way Trades Loom for USD/CNH

Chinese Yuan traders are expecting rangebound trade against the US Dollar in the near term, according to OCBC's Sim Moh Siong and Christopher Wong. The duo notes that the daily People's Bank of China (PBoC) fix has been clustered around 6.79, acting as an anchor rather than a directional signal.

The stable fix points to two-way moves in USD/CNH, with support at 6.7660/6.7540 and resistance at 6.78/6.7840/6.80. Broader USD moves and China's external surplus remain key drivers of the market.

USD/CNH remained broadly rangebound last week, with the daily fix staying tightly clustered around 6.79 and ending Friday little changed from the previous week. The mild bearish momentum on the daily chart remains intact, but traders are likely to see two-way trades for now.