USD/CNH downside pressure negated above 6.8650 – UOB

FX Strategist at UOB Group Peter Chia gave his assessment of USD/CNH in the near term.

Key Quotes

“One of the key movers on Thursday was USD/CNH which dropped 0.37% to 6.8490, largest single-day move since 15- March”.

“This came after a research report on China-U.S. economic and trade relations by the Chinese Ministry of Commerce which opined the RMB exchange rate will “gradually reach a new equilibrium” and two-way flexibility versus USD will strengthen”.

“In early trade today, forward points in USD/CNH especially the short dates were seen jumping higher and may inspire further downside in USD/CNH”.

“The next level to focus on is at 6.8260 and only a move above 6.8650 would negate the downside pressures”.