USD/CNH: Grind lower toward key support – UOB

Quek Ser Leang at UOB notes that USD/CNH’s earlier sharp decline has stalled into consolidation around 6.76, with intraday trading expected between 6.7540 and 6.7640. The bank says the recent drop has increased the probability of a move to 6.7510, while its 1–3 month view still looks for a gradual grind lower, potentially toward the 2023 low at 6.6980.

Offshore Yuan keeps pressure on Dollar

"USD opened and then traded on a soft note yesterday. When it was at 6.7580, we were of the view that it “could continue to decline.” We pointed out that “it remains to be seen whether it can break clearly below 6.7510.”"

"However, USD did not decline much further, trading within a range of 6.7557/6.7609 before closing little changed at 6.7593 (-0.06%). The current price movements are likely part of a consolidation phase, probably between 6.7540 and 6.7640."

"Last Friday (12 Jun, spot at 6.7660), we highlighted that USD “could edge lower, but given the lacklustre momentum, any decline may or may not reach 6.7510.” Yesterday (15 Jun, spot at 6.7580), we highlighted that the sharp decline after the opening “has increased the probability of USD reaching 6.7510.”"

"We will continue to hold the same view as long as 6.7750 (no change in ‘strong resistance’ level) is not breached."

"USD/CNH is likely to continue grinding lower; it remains to be seen whether it can reach the 2023 low of 6.6980. (dated 05 Jun 2026, 6.7580)"

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