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USD/CNH eases as yuan nears strongest level in over three years
FXStreet notes exporter conversions and a softer US dollar could support further RMB gains, though policymakers are seen favoring a measured pace.
OCBC strategists Sim Moh Siong and Christopher Wong said USD/CNH slipped after weak US payrolls, with the renminbi trading near its strongest levels in more than three years, according to FXStreet.
They highlighted potential support for additional RMB strength, including exporter conversions and a softer US dollar, while adding that policymakers appear to prefer a measured pace of appreciation.
FXStreet also pointed to technical levels, with mild bearish momentum on USD/CNH, resistance seen around 6.7540 to 6.7630 and support near 6.74 to 6.72.
The note said the most recent USD/CNY fixing pattern signaled policymakers favor a less aggressive appreciation, with the USD/CNY fix set 20 pips lower than Bloomberg expectations for a -202 pips decline.