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USD/CNH seen broadly rangebound as PBoC fix anchors moves
OCBC notes softer US inflation recently pressured the dollar, while firmer PBoC fixings supported gradual CNH strength, though weak domestic growth and easing expectations may cap gains.
OCBC strategists Sim Moh Siong and Christopher Wong expect the USD/CNH exchange rate to remain broadly rangebound, citing the People's Bank of China fixing as the main factor anchoring day to day moves.
They point to recent softer US inflation as a headwind for the US dollar, while firmer PBoC fixings have helped the Renminbi (CNH) strengthen gradually.
Still, OCBC says subdued Chinese domestic growth and expectations for policy easing are likely to limit how far the RMB can rise in the near term.