USD/CNH declines after weak US jobs data, pushing the yuan to levels last seen in 2021 amid controlled appreciation by policymakers.
The Chinese yuan traded near its strongest levels in over three years against the US dollar after USD/CNH slipped following weaker-than-expected US payrolls data. The move reflects broader dollar softness and exporter-driven demand for the yuan, though gains were partially trimmed by softer China inflation figures.
Policymakers continue to favor a measured pace of appreciation, as seen in the daily USD/CNY fix, which was set 20 pips lower than expected. Technical resistance for USD/CNH stands at 6.7540–6.7630, with support near 6.74–6.72, while momentum indicators suggest waning bearish pressure.
Analysts see room for further yuan strength but expect authorities to maintain a controlled trajectory, balancing external pressures with domestic economic conditions.