The slight increase in upward momentum of the US Dollar (USD) against the Chinese Yuan (CNH) might lead to a higher trading range between 7.1220 and 7.1340, rather than a sustained advance. UOB Group analysts believe there is a chance for the USD to test the 7.1370 level, although sustained momentum is not yet evident.<\/p>\n
In a 24-hour view, expectations were that the USD might edge above 7.1280 but would not sustain above this level. The USD reached a high of 7.1290 and closed at 7.1265, reflecting only a slight increase in momentum.<\/p>\n
Over a 1-3 weeks view, upward momentum is increasing but is insufficient for a sustained advance. The USD needs to close above 7.1280 to move towards 7.1370, as long as it does not fall below 7.1020. A close above 7.1280 remains favourable but not decisive, with a subsequent closing at 7.1265. Should the USD break below 7.1140, the current mild upward pressure would likely ease.<\/p>\n
We see mild upward pressure on the US dollar against the yuan, creating a potential opportunity in the coming weeks. Traders might consider buying short-term call options targeting the 7.1370 level. This view is supported by the recent US jobs report, which showed a surprise gain of 210,000 jobs in October 2025, suggesting the Federal Reserve may delay rate cuts.<\/p>\n
The case for a stronger dollar is reinforced by recent data from China. Last week’s Caixin Manufacturing PMI for October 2025 unexpectedly dipped to 49.8, indicating a slight contraction and fueling speculation that the PBoC will maintain its accommodative policy stance. This policy divergence between the US and China typically favors a higher USD\/CNH.<\/p>\n
A strategic approach would be to wait for a decisive daily close above 7.1280 to confirm the upward momentum before entering new positions. This level acts as a key trigger for the move towards 7.1370. Conversely, we would see the current upward pressure ease if the pair breaks below the 7.1140 support level.<\/p>\n
Looking back, we saw a similar pattern in late 2023 when USD\/CNH grinded higher before facing significant resistance above the 7.15 level. The current analysis does not suggest a sustained, sharp advance, so using options strategies that benefit from a gradual rise appears prudent. This manages risk in what is expected to be a controlled upward drift.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD shows mild upward momentum against CNH; resistance near 7.1370 possible, but sustained advance remains uncertain.<\/p>\n","protected":false},"author":62,"featured_media":16964,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-33983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=33983"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16964"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=33983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=33983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=33983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}