USD/CNH: Likely to trade in a 7.1850/7.2450 range – UOB Group

FXStreet Insights Team FXStreet

Downward momentum has largely faded; US Dollar (USD) is likely to trade in a 7.1850/7.2450 range for now against Chinese Yuan (CNH), UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Downward momentum has largely faded

24-HOUR VIEW: "When USD at 7.2160 in the early Asian session yesterday, we noted that 'there has been a tentative buildup in upward momentum.' We expected USD to 'to edge higher', but we indicated that 'as momentum is not strong, any advance is unlikely to reach the major resistance

at 7.2330.' We also indicated that 'there is another resistance level at 7.2250.' Our view was not wrong, as after rising to 7.2260, USD eased off to end the day largely unchanged at 7.2146 (+0.01%). Upward momentum has faded. Today, we expect range trading, likely between 7.2050 and 7.2250."

1-3 WEEKS VIEW: "After holding a negative USD view since early this month, we revised our view to neutral yesterday (20 May, spot at 7.2160). We indicated that 'downward momentum has largely faded, and instead of weakening, USD is likely to trade in a 7.1850/7.2450 range for now.' There

is no change in our view."

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: The 0.7000 region holds the downside, for now

AUD/USD has started the week in a negative fashion, giving away part of Friday’s uptick and refocusing on the downside. The pair’s daily decline has come on the back of the another firm performance of the Greenback, although it has met some decent contention near the 0.7000 neighbourhood.

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 holds on just above $4,000

Gold clings to daily gains, leaving behind two daily drops in a row and reclaiming the key $4,000 mark per troy ounce and above on Monday. The better tone in the US Dollar and mixed US Treasury yields accompany the precious metal’s uptick, while declining crude oil prices appear to sustain the bounce for now.

Bitcoin vs Gold: BTC springs above $80K as XAU tops $4,000 amid low compressed volatility

Bitcoin (BTC) is bouncing back above $80,000 on Monday, while Gold (XAU/USD) is springing above the pivotal $4,000 level, up a modest 0.34% and 0.64%, respectively. Both assets are advancing amid low volatility as market participants position ahead of the Federal Reserve’s (Fed) decision on Wednesday and earnings from several major tech companies.

Everyone's bracing for a hawkish central bank week. Here's why the surprise could be dovish

Five of the world's major central banks are preparing to announce monetary policy decisions this week, with investors increasingly anticipating higher interest rates as the global energy shock continues to push inflation above target.

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.