Chinese Yuan: Upside bias within defined band against US Dollar – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as holding largely unchanged, but with a slight increase in downward momentum. Intraday, they see the bias tilted lower toward 6.6950, with resistance at 6.7055 and 6.7100 and a clear break below 6.6950 deemed unlikely. Over 1–3 weeks, they expect USD/CNH to trade between 6.6950 and 6.7270, while over 1–3 months they anticipate gradual downside as long as it stays below the cloud near 6.7815.

Dollar-Yuan bias leans lower

"24-HOUR VIEW: We stated yesterday that USD “could edge higher,” but we held the view that it “is likely to stay within a 6.7000/6.7100 range.” USD subsequently rose to 6.7095, declined to 6.7015 before closing largely unchanged at 6.7027 (+0.02%). The slight increase in downward momentum suggests the bias is tilted to the downside toward 6.6950. A clear break below this level is unlikely. Resistance is at 6.7055, followed by 6.7100."

"1-3 WEEKS VIEW: In our most recent narrative from last Tuesday (29 Sep, spot at 6.7110), we highlighted that “for the time being, we expect USD to trade in a range between 6.6950 and 6.7270.” We continue to hold the same view for now."