Chinese Yuan: Neutral within defined band against US Dollar – UOB
UOB’s Quek Ser Leang and Lee Sue Ann report a sharp rebound in USD/CNH above 6.78, which invalidated their prior bearish view. They now see the pair as neutral, expecting consolidation between 6.7620 and 6.7980 near term, with 6.7850 and 6.7980 acting as key resistance levels. On a longer horizon, the rebound still has scope to challenge 6.9720.
Dollar-Yuan rebound shifts stance to neutral
"24-HOUR VIEW: Yesterday, we held the view that USD “is likely to edge higher within a range of 6.7610/6.7710.” We did not expect USD to soar to 6.7817. While the sharp rise appears excessive, there is scope for USD to test 6.7850. The next resistance at 6.7980 is unlikely to come under threat. Support is at 6.7700, followed by 6.7660."
"1-3 WEEKS VIEW: We have held a negative USD view since last week. On Tuesday (02 Jun, spot at 6.7640), we indicated the following: “Downward momentum remains mild, but the decline has not stabilised. Overall, only a breach of 6.7800 (‘strong resistance’) would indicate that the decline has stabilised. Until then, USD could continue to edge lower. The next level to watch is 6.7500.” Yesterday, USD staged a strong rebound and broke above 6.7800, printing a high of 6.7817. Downward momentum has faded, and we are neutral on USD now, and expect it to trade between 6.7620 and 6.7980 for the time being."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI boom reshapes the wafer foundry landscape! UBS: Explosive demand accelerates advanced process expansion, mature process enters upward cycle
UBS stated in a recent research report that within the foundry market, the Total Addressable Market (TAM) for the N2 (2nm) node far exceeds expectations, A14 (1.4nm) production expansion is accelerating, and the upcycle for mature process nodes has already begun.
$1,999 Foldable iPhone Is Ready, but Apple (AAPL.US) Faces Over $5.7 Billion Patent Penalty
As Apple intensifies its efforts in foldable displays and AI business, it faces a haptic technology patent compensation ruling exceeding $5.7 billion. On September 25, a federal jury in California found that Apple's Taptic Engine, used in certain iPhone and Apple Watch models, infringed on two patents held by Taction Technology.
Prospects for the opening of the Hormuz Strait are overshadowed, Asian bonds under pressure: 2Y Japanese bond yield approaches 2%, 3Y Korean bond yield rises to highest level since 2022
With high oil prices, short-term bond yields in South Korea and Japan have risen.
5% US Treasury pressure weighs on global assets, while Australian government bonds open up a window for allocation? Fixed income giant Pimco calls the rate hike expectations too aggressive
Pacific Investment Management Company (Pimco) holds a constructive view on Australian bonds, believing that market expectations for rate hikes are too high. Pimco stated that the rate hike cycle in Australia has been "fully priced in," and cracks are beginning to appear in the economy, making Australian bonds look attractive, especially in the 5- to 10-year segment of the yield curve.
Crypto prices
More
