Usdcnh To Trade In Range

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Usdcnh To Trade In Range

Usd/Cnh To Trade In 7.1000 - 7.1600 Range

UOB Group has issued a new trading range for the USD/CNH pair. According to them, the medium-term trading range for the USD/CNH is 7.13 - 7.15. Similarly, the long-term range for the pair is between 7.1000 and 7.1600.

quick look at the charts of USD/CNH shows that it is already trading inside the established trading range. In the short term, the USD/CNH pair will continue to consolidate with a little bit of US Dollar strength.

Dovish Fed Will Support Cnh

However, the US Dollar's strength will not be long-lived as the Fed is now getting ready to turn dovish completely. This shift will happen before the end of 2025 and will only invite more US Dollar weakness.

Although the Chinese central bank takes measures to keep the currency weak, experts still expect downward pressure in the USD/CNH pair. But, even the downside pressure in USD/CNH will only push the pair towards the lower end of the range near 7.1000.

But, if the Fed turns more dovish than the market expectations, then even the 7.1000 level will become vulnerable. In that case, the next stop will be 7.05 and then the 7.00. Both of these are strong support levels, and the 7.00 is very unlikely to be breached.

On the way up, the USD/CNH is very unlikely to cross the 7.1600 level. Why? Because the US Dollar's weakness will remain a dominant theme across the board in the next few months.

Strength in the CNH will also prop up other currencies such as the AUD and the NZD. Both of these currencies are very closely related to the CNH, as New Zealand and Australia have close trade ties with China.

The bottom line is that the US Dollar is set to lose against the CNH, AUD, NZD, and even major currencies. Overall, the next few quarters will be tough for the US Dollar as the funds will move into currencies such as CNH, EUR, and GBP.

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