USD/CNH: Bearish momentum nears key supports – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong note that USD/CNH has fallen sharply on a stronger Chinese Yuan (CNY) fix and improved risk sentiment following the US-Iran ceasefire. They still expect a measured pace of CNH (Offshore Renminbi) appreciation but highlights key technical supports around 6.82 and below. Wong stresses close monitoring of the daily fix and the upcoming Trump-Xi meeting in Beijing.

RMB appreciation trend tests support

"USD/CNH fell sharply overnight, taking cues from a much stronger CNY fix (6.8680 vs. 6.8854 the day before). This is also the lowest USD/CNY fix since Apr 2023, reinforcing the trend of guided RMB appreciation since Apr 2025."

"Elsewhere, broader sentiment switched to risk-on, following the 2-week ceasefire deal and triggered an unwinding in safe-haven USD demand."

"While we continue to look for a measured pace of RMB appreciation, we would still watch the fix closely for any signs to moderate the pace or to increase the pace of appreciation especially as we inch closer to Trump-Xi meeting in Beijing on 14-15 May."

"USD/CNH last seen at 6.8335 levels."

"Immediate support around 6.8200/70 levels (double bottom). Decisive break out puts next support at 6.81, 6.79 levels."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)