Neutral
USD/CNH stabilizes near 6.7095 after volatile trading post-US inflation data.
In the past 24 hours, the USD/CNH pair experienced volatility following the release of unexpected U.S. core consumer price index data, which bolstered expectations of a potential Federal Reserve interest rate hike. Despite initial fluctuations, the pair has since stabilized around 6.7095.
Key points
- USD/CNH pair initially rose to 6.7148 post-CPI release, then fell to 6.7060, and is now trading at 6.7095.
- OCBC analysts note that the People's Bank of China's (PBoC) daily fixing continues to signal a preference for gradual yuan appreciation.
- UOB strategists observe that the bullish bias on the yuan has weakened, with the pair expected to trade within a 6.7040–6.7290 range over the next one to three weeks.
Sources
AI-generated from public news sources. Not financial advice.
