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UOB analyst Quek Ser Leang observes a slight downward momentum in the USD/CNH pair but anticipates continued range-bound trading. The bank has adjusted its intraday target range to 6.7820–6.7940 and maintains a neutral stance for the 1–3 week outlook, expecting USD/CNH to fluctuate between 6.7750 and 6.8080. This assessment reflects cautious positioning amid mixed macroeconomic signals from China and the U.S., with limited catalysts to drive a breakout.
For traders, the neutral bias suggests limited directional opportunities, with strategies likely focused on range trading and volatility management. The USD/CNH pair’s stability could attract hedgers and arbitrageurs, while broader forex markets may remain influenced by Fed policy signals and Chinese economic data. The lack of a clear trend underscores the importance of technical levels and order flow dynamics.
Investors should monitor upcoming U.S. nonfarm payrolls and Chinese manufacturing PMI for potential shifts in momentum. Central bank interventions and geopolitical risks, particularly in the U.S.-China relationship, could also impact the pair. Traders are advised to maintain tight stop-loss orders and prioritize liquidity management in this low-volatility environment.
