China’s central bank signals comfort with modest yuan strength but resists rapid appreciation, keeping USDCNY near 6.7817.
The People’s Bank of China is allowing gradual yuan appreciation against the USD, with Friday’s USDCNY midpoint set at 6.7817, 550 pips above market expectations. The move reflects a preference for measured gains amid softer USD trends and exporter conversions.
Recent trading saw USDCNH close at 6.7210, with mild bearish momentum and an oversold RSI. Key resistance levels stand at 6.7480 and 6.7540, while support lies at 6.72, 6.7140, and 6.70. The PBoC’s fixing behavior suggests downside bias but guards against sharp reversals.
Analysts note the yuan remains near multi-year highs, though the central bank’s cautious stance limits further rapid gains. Softer USD dynamics and exporter flows continue to provide underlying support.