The Chinese Yuan (RMB) has continued its upward momentum, with the USD/CNY exchange rate breaking below 6.70 as the People's Bank of China (PBoC) strengthened its daily fix for the ninth consecutive session. OCBC strategists Sim Moh Siong and Christopher Wong highlight that this firmer fixing bias is particularly notable given the broader US dollar and interest rate environment, and it signals a recent shift in the PBoC's guidance towards allowing a stronger RMB. This move comes ahead of the Trump-Xi meeting, with strategists suggesting that the RMB could remain supported if the PBoC maintains its current pace of stronger fixes. However, they caution that wide US–China yield differentials and weak domestic fundamentals are likely to cap the pace of RMB appreciation beyond the event. Technical analysis points to immediate support for USD/CNY at 6.69, with further support at 6.67 and resistance at 6.7030 and 6.7110 [1].
In contrast, the Singapore Dollar (SGD) has been trading sideways against the US Dollar, with United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann maintaining a constructive short-term view on USD/SGD. The pair has hovered around 1.2760, with recent trading confined to a narrow range between 1.2745 and 1.2766, closing at 1.2763 (+0.05%). The analysts expect further sideways movement in the near term, with a slightly firmer underlying tone suggesting a higher intraday range of 1.2750/1.2775. For the 1–3 week outlook, the positive stance on USD/SGD remains as long as strong support at 1.2725 holds, with resistance levels at 1.2800 and 1.2835 being key levels to watch for potential breakout or reversal opportunities [2].
While the RMB's gains are being driven by central bank intervention and are subject to broader macroeconomic constraints, the SGD is exhibiting stability with a mild upward bias for the USD, contingent on technical support levels holding. No significant market reactions or forward-looking analyst opinions beyond these technical and policy-driven observations are provided in the sources [1][2].
CONCLUSION
The Chinese Yuan's recent strength is closely tied to the PBoC's fixing strategy ahead of a major political event, but its appreciation is expected to be limited by underlying economic factors. Meanwhile, the Singapore Dollar remains stable, with analysts maintaining a cautiously positive outlook for USD/SGD as long as key support levels are intact. Both currencies are currently influenced more by technical and policy factors than by major shifts in market sentiment.