The yuan strengthens against the dollar, nearing 6.77 as technical resistance and trade optimism weigh on USD/CNH.
The offshore yuan extended its decline against the dollar, approaching Societe Generale’s downside targets of 6.77 and the 2023 low of 6.69. The pair failed to break above the 50-day moving average, a key resistance level since last year, signaling weak upward momentum.
Recent moves reflect stretched positioning but lack clear rebound signals. Near-term resistance is seen at 6.81–6.85, while the yuan’s drop to a three-year low of 6.7861 underscores the People’s Bank of China’s tolerance for appreciation amid easing trade tensions.
High-level U.S.-China trade discussions may marginally support sentiment, though broader geopolitical risks remain secondary to market dynamics.