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RMB outlook stays gradual as USD/CNH edges higher

OCBC notes resistance at 6.7410 to 6.75 and support at 6.72 to 6.70, with two way risks including potential secondary sanctions tied to Iran.

Reported · Written up by our desk · Major Pairs

OCBC Bank strategists Sim Moh Siong and Christopher Wong said USD/CNH has edged higher alongside a broader US dollar rebound and firmer US Treasury yields, while the People’s Bank of China prefers a gradual appreciation path for the renminbi.

They added that mild bearish momentum on the daily chart is still in place, but a modest rebound is not ruled out. The outlook points to resistance in the 6.7410 to 6.75 area, and support around 6.72 to 6.70.

OCBC also flagged that geopolitical risks, including Iranian oil developments and the possibility of secondary sanctions, could increase renminbi volatility. The pair was last seen near 6.7225 levels in the note.

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