USD/CNH extends decline as CNY fix hits 14-month low – OCBC

FXStreet Insights Team FXStreet

USD/CNH continues to drift lower amid a softer US Dollar (USD) and another strong CNY fix, with the PBoC guiding the RMB along a controlled appreciation path. USD/CNH last seen at 7.0536 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note, OCBC's FX analysts Frances Cheung and Christopher Wong note.

PBoC maintains steady appreciation pattern for RMB

"USD/CNH continued to trade lower, taking cues from a softer USD and lower USD/CNY fix. The fix was set at 7.0638, the lowest in 14 months."

"The fixing pattern remains consistentsince Apr-2025 and we view this as a deliberate move to steer the RMB on a gradual appreciation path while maintaining market order. Rapid appreciation is likely not what policymakers wish to see as that could lead to a rush for exporters to convert USD holdings (in turn resulting in disorderly appreciation or higher volatility)."

"Daily momentum is flat while RSI is near oversold conditions. Support here at 7.05, 7.0380 levels. Decisive break past these levels risk the pair overshooting towards 7. Resistance at 7.08 (21 DMA)."

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 sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold gains at start of Fed’s policy week

Gold finds bids below $4,000 in the Asian trade on Monday. The precious metal starts the Federal Reserve’s monetary policy week on positive note, but is broadly vulnerable, being closer to its three-month low of $3,975.

Bitcoin slides below $80,000, Ethereum and XRP bears in control

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) bears remain in control, extending losses on Monday after three straight weeks of declines. BTC slips below $80,000, while ETH and XRP follow BTC’s lead and trade lower at $2,315 and $1.30, respectively. The price action of these top three cryptocurrencies suggests weakening momentum indicators, raising the risk of a deeper correction.

CFTC Report: WTI rally runs ahead of positioning

The week in one sentence: WTI prices surged while speculative longs were cut in the week to October 20, creating the clearest price/positioning divergence. Sterling and the Canadian Dollar led the constructive currency shift, while Yen longs also rebuilt. Speculators turned less constructive on the WTI, reducing their net exposure to around 89.3K contracts.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.