USD/CNH: 7.0636 is out of reach for now – UOB Group

FXStreet Insights Team FXStreet

Provided that 7.1130 is not breached, the US Dollar (USD) could continue to decline; the likelihood of it reaching 7.0636 is not high. In the longer run, boost in momentum has increased the chance of USD dropping to and potentially breaking below 7.0636, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

USD continues to decline

24-HOUR VIEW: “The sharp selloff in USD that sent it plunging by 0.52% (NY close of 7.0943) was surprising (we were expecting sideways trading). What is not surprising is the decline has resulted in a strong increase in momentum. Today, provided that 7.1130 (minor resistance at 7.1010) is not breached, USD could continue to decline. That said, the likelihood of it reaching 7.0636, the low registered early this month, is not high. There is another support level at 7.0770.”

1-3 WEEKS VIEW: “On Monday (26 Aug, spot at 7.1100), we indicated that ‘there is potential for USD to decline to the July’s low of 7.0636.’ Yesterday (29 Aug, spot at 7.1290), we indicated that “downward momentum is slowing, and should USD breach 7.1460 (‘strong resistance level’), it would mean that USD is not declining further. USD subsequently sold off sharply, dropping to a low of 7.0859. The boost in momentum has increased the chance of USD dropping to and potentially breaking below 7.0636. Looking ahead, the next level to watch below 7.0636 is 7.0400. On the upside, the ‘strong resistance’ level has moved lower to 7.1350 from 7.1460.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD stays bid above 0.7100 on Australian trade data, Mideast optimism

AUD/USD clings to minor recovery gains above 0.7100 in the Asian session on Thursday as a new Israel-Lebanon ceasefire keeps a lid on the safe-haven US Dollar. Meanwhile, strong AustralianTrade Balane data also help the Aussie pair sustain the bounce from weekly lows.

USD/JPY hovers near the 160.00 intervention threshold on Mideast tensions

USD/JPY struggles to find acceptance above 160.00 and retreats from a one-month high in the Asian session on Thursday amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, a new Israel-Lebanon ceasefire caps the US Dollar and supports the currency pair. However, renewed US-Iran tensions keep the downside limited in the Greenback and the pair.

Gold rebounds from one-week low as Israel-Lebanon truce pressures safe-haven USD

Gold gains some positive traction on Thursday and climbs to the $4,475 area during the Asian session, reversing a major part of the previous day's slide to a one-week low. The Israel-Lebanon truce prompts some profit-taking around the US Dollar and supports the commodity.

Hyperliquid: ETF demand, capital rotation fuel HYPE rally as Bitcoin melts

Hyperliquid price sustains an upward trend near its all-time high of $75.76 on Thursday after posting 80% gains in May, while Bitcoin (BTC) retraces below $65,000, triggering a market-wide panic.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.