Insights 
VT 
UOB Group’s FX analysts project that the USD/CNH will trade within a range of 7.1200 to 7.1550. The recent activity saw a temporary dip to 7.1242, followed by a rebound to 7.1377, as noted by analysts Quek Ser Leang and Peter Chia.
The 24-hour outlook suggests that USD is likely to range-trade between 7.1300 and 7.1480, with less likelihood of a sustained decline. In the past week, there has been a shift in perspective, with analysts initially expecting a rise towards 7.1650. However, the USD fell below the anticipated strong support level of 7.1330, reaching a low of 7.1242.
Usd Cnh To Remain Range Bound
Although upward momentum has faded, there is no observed increase in downward momentum. Consequently, the USD/CNH is expected to remain range-bound between 7.1200 and 7.1550 in the forthcoming weeks. The insights were provided by FXStreet Insights Team, who compile analysis from experts in the field.
Based on the current price action, we expect USD/CNH to be stuck in a fairly tight range for the next few weeks. The pair will likely trade between 7.1200 and 7.1550. The surprising drop below support earlier this week quickly reversed, showing there is little appetite to push the yuan significantly stronger right now.
This sideways movement is reinforced by recent economic data from both sides. Last week’s US inflation report for September 2025 came in at a stubborn 3.5%, which keeps the Federal Reserve from considering rate cuts but isn’t high enough to signal a new hiking cycle. This puts a cap on dollar strength, firming up the resistance around the 7.1550 level.
On the other side, China’s Q3 2025 GDP figures showed stable 4.8% growth, and the latest trade balance numbers revealed a small but welcome uptick in exports. This economic stability reduces the need for aggressive easing from the People’s Bank of China. This provides a solid floor for the yuan, supporting the 7.1200 level.
Trading Strategy in Low Volatility
For derivative traders, this environment suggests strategies that profit from low volatility. Selling short-dated strangles with strikes just outside the expected 7.1200-7.1550 range, such as selling a 7.1600 call and a 7.1150 put, could be a viable approach. This strategy benefits from time decay as long as the pair remains confined within this channel.
The key risk is a breakout driven by an unexpected economic release, like the upcoming US employment report. We saw much higher volatility in this pair back in 2023, so complacency is not advised. Traders should place stop-losses on these positions if the spot price breaks decisively beyond the established range.
