UOB forecasts further downside for USD/CNH, targeting the 2023 low of 6.6980 amid sustained offshore Yuan pressure.
USD/CNH has stalled near 6.76 after a sharp decline, trading between 6.7540 and 6.7640 intraday. UOB notes the drop increases the likelihood of a move toward 6.7510, with a longer-term view pointing to a gradual grind lower toward 6.6980, the 2023 low.
The pair opened softer yesterday, closing at 6.7593 after fluctuating within a narrow range. UOB previously highlighted potential downside but cautioned that momentum remained lackluster. Resistance is pegged at 6.7750, with a breach required to shift the bearish outlook.
Offshore Yuan strength continues to weigh on the Dollar, though the pace of decline may slow as consolidation persists. The bank maintains its 1-3 month forecast for further weakness in USD/CNH.