USD/CNH briefly dropped to 6.7060 in Monday trading, its lowest level since February 2023, before reversing after the PBoC set the daily fixing stronger than expected at 6.7795, compared with Friday’s 6.7787. Market pricing had implied a fixing more than 700 pips lower than the actual level, pointing to official efforts to moderate the pace of renminbi appreciation while leaving the broader direction intact.
USD/CNH Price Movements and PBoC Fixing
The pair was last around 6.71. Daily momentum indicators and RSI were described as lacking a clear directional bias, suggesting two-way risks in the near term. Support was cited at 6.7060 and the 6.70 handle, while resistance levels were flagged at 6.7180 and 6.7270, the latter corresponding to the 21-day moving average.
