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USD/CNH upside limited by tariff risk and PBoC stance

OCBC expects the USD/CNH pair to remain near recent lows, with resistance around 6.74 and support near 6.72 to 6.70.

Reported · Written up by our desk · Major Pairs

OCBC analysts Sim Moh Siong and Christopher Wong said reports of potential US tariffs on Chinese goods, along with the PBoC’s resistance to rapid Renminbi gains, are likely to cap further downside in USD/CNH.

They noted that while the broader bias for RMB appreciation remains intact, the pair is trading near recent lows and mild bearish momentum is showing tentative signs of turning higher from oversold conditions.

In their technical read, OCBC highlighted resistance at 6.74 and 6.7460, including the 21-day moving average, and support at 6.72 and 6.70.

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