OCBC’s Sim Moh Siong and Christopher Wong highlight that USD/CNH is trading near recent lows as Chinese policymakers allow a measured pace of Renminbi (RMB) appreciation while resisting an overly rapid move via a sizeable fixing premium. Weaker July credit data reinforce domestic-demand concerns, but exporter conversions, fixing bias and a softer US Dollar (USD) are seen as offsets, with support at 6.74/6.72 and resistance near 6.7580/6.7730.
RMB near strongest levels since early 2023
“RMB continue to trade near its strongest levels since early 2023. Friday’s USD/CNY fixing of 6.7878 was the lowest since Feb 2023 but was still around 460pips…
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