UOB Sees Break Below 6.7000 as Key to Further USD/CNH Decline

Analysts at UOB are maintaining their negative stance on the US dollar (USD) against the Chinese yuan (CNH), with a target of breaking below 6.7000.

The pair has been trading in a narrow range between 6.7033 and 6.7074, which analysts believe is part of a 'range-trading phase'. USD/CNH's upside potential is capped at 6.7160, while any break below 6.7000 could lead to further downside towards 6.6900.

The analysts note that the downward momentum has increased, and if USD breaks and holds below 6.7000, it could decline further to 6.6900.