OCBC strategists Sim Moh Siong and Christopher Wong report that USD/CNH experienced a sharp decline, attributed to a stronger Chinese Yuan (CNY) fix and improved risk sentiment following a US-Iran ceasefire [1]. The latest CNY fix was set at 6.8680, compared to 6.8854 the previous day, marking the lowest USD/CNY fix since April 2023 and reinforcing the trend of guided RMB appreciation since April 2025 [1]. The shift to risk-on sentiment, triggered by the 2-week ceasefire deal, led to an unwinding of safe-haven USD demand [1].
The strategists note that while they expect a measured pace of CNH (Offshore Renminbi) appreciation, key technical supports for USD/CNH are identified around 6.8200/70 (double bottom), with further support at 6.81 and 6.79 if a decisive break occurs [1]. USD/CNH was last seen at 6.8335 [1]. Wong emphasizes the importance of closely monitoring the daily fix and the upcoming Trump-Xi meeting in Beijing, scheduled for 14-15 May, as potential factors that could influence the pace of RMB appreciation [1].
No specific analyst opinions or forward-looking statements regarding market reactions were provided, but the focus remains on technical levels and the impact of geopolitical events on currency movements [1].
CONCLUSION
USD/CNH has fallen sharply due to a stronger Yuan fix and improved risk sentiment, with key technical supports being closely watched. The upcoming Trump-Xi meeting and daily fix adjustments are expected to play a significant role in determining the pace of RMB appreciation. Market participants are advised to monitor these developments for further direction.