USD/CNH: RMB depreciation continues – OCBC
|The recent USD/CNY fixings suggest a measured pace of RMB depreciation, OCBC analysts Frances Cheung and Christopher Wong note.
USD/CNH continues to move up towards 7.31
“The recent USD/CNY fixings have followed a pattern that continued to reinforced out view that authorities are pursuing a measured pace of RMB depreciation.”
“Change in daily fix on average is about +17pips since 19 Jun (about 6 days) vs. average daily change of about 4.5pips/day since May2024. Higher USD/CNY fix and wider CNH-CNY spread gives the impression there could be further weakening in RMB ahead.”
“USD/CNH was last at 7.3011. Momentum is bullish while RSI rose. Risks skewed to the upside. Resistance at 7.31. Support at 7.2705 (21 DMA).”
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