Recent movements in Asian currencies highlight a pause in US Dollar strength against both the Chinese Yuan (CNH) and Singapore Dollar (SGD). OCBC FX strategists Sim Moh Siong and Christopher Wong report that USD/CNH's recent run-up has stalled, with the pair trading around 6.8020. While daily bullish momentum remains intact, the RSI is turning lower from overbought conditions, suggesting tentative signs of a turnaround. Resistance is noted at 6.8260, with support at 6.80 and 6.7750. The strategists caution that CNH may still trade on the back foot in the near term if USD bullish momentum persists, but they view the recent RMB slippage as a corrective move rather than a break in the appreciation trend. The weakness in CNH is attributed to broader USD strength, driven by hawkish Fed rhetoric and softer risk sentiment due to a sell-off in AI and tech-linked equities. OCBC expects CNH weakness to remain measured unless the fixing signals a broader depreciation bias [1].
Meanwhile, UOB analysts Quek Ser Leang and Lee Sue Ann observe that USD/SGD has stalled after a six-day advance, with the pair easing to 1.2950 before closing near 1.2970, a decline of 0.08%. They expect range trading between 1.2950 and 1.2980 in the near term, warning that a break below 1.2925 would signal that the recent 1.2991 high may cap current Dollar strength against the Singapore Dollar. The positive USD outlook has been maintained since last week, with the next technical target at 1.3000. However, upward momentum has eased, and USD needs to build on its gains soon, or risk losing its recent strength [2].
Both sources highlight technical resistance and waning momentum for the US Dollar against these Asian currencies. OCBC emphasizes that the RMB's recent weakness is seen as a correction, not a trend reversal, while UOB notes that the SGD is consolidating and may remain in a range unless key support levels are breached. Market reactions are described as measured, with no indication of sharp moves or panic, and both banks are watching for signals that could validate broader currency trends [1][2].
CONCLUSION
The US Dollar's recent strength against the Chinese Yuan and Singapore Dollar has stalled, with both currencies showing signs of technical resistance and range-bound trading. Analysts from OCBC and UOB expect measured moves in the near term, with no clear signals of a broader trend reversal. Market participants are advised to watch for key technical levels and central bank signals for further direction.