The Renminbi has continued to firm, with onshore spot hitting a fresh four-year high versus the US dollar, while the CFETS RMB index has also been trading around four-year highs on a trade-weighted basis. The People’s Bank of China has been guiding the daily fixing gradually stronger, implying tolerance for further appreciation at a measured pace even as the US dollar has stayed relatively firm against other major currencies.
USD/CNH Technicals and Key Levels
USD/CNH was last seen around 6.6580, with downside-leaning technicals on the daily chart and the RSI in oversold territory, which leaves scope for a short-term snapback if fixing momentum shifts. Key levels cited include support at 6.65 and then 6.62, with resistance at 6.6830 (21 DMA) and 6.70 (50 DMA).
Policy Guidance and Growth Targets
China’s Fifth Plenum reaffirmed growth targets without announcing new stimulus, reinforcing the view that policymakers are comfortable with gradual RMB strength.
