The offshore Chinese Yuan continues to trade within a clearly defined territory against the US Dollar, carrying a slight upward tilt amid weakening downward momentum for the American currency. According to technical assessments from UOB strategists Quek Ser Leang and Lee Sue Ann, the USD/CNH pair has remained largely unchanged overall, yet an incremental pickup in downside pressure suggests the intraday trajectory is tilted lower toward the 6.6950 support level. Despite this softening tendency, market analysts view a clean break beneath 6.6950 as unlikely, while identifying immediate overhead resistance at 6.7055 followed by 6.7100.
Daily Price Action and Short-Term Range Projections
Looking at recent daily price behavior, earlier projections had anticipated that the US Dollar would edge higher while remaining contained inside a 6.7000 to 6.7100 band. In subsequent trading, USD/CNH advanced to an intraday peak of 6.7095 before sliding to 6.7015, ultimately finishing virtually unchanged at 6.7027, an increase of just 0.02 percent. The slight accumulation of downward momentum points to an intraday downside bias pointing toward 6.6950. However, upside moves are expected to face solid obstacles at 6.7055 and 6.7100.
Over a one to three week horizon, broader projections remain steady. As highlighted in previous analysis from Tuesday, 29 September, when the spot rate stood at 6.7110, the US Dollar is expected to fluctuate between 6.6950 and 6.7270 for the time being. Strategists maintain this exact range expectation. Looking further ahead across a one to three month timeline, a gradual downward trajectory is anticipated for USD/CNH so long as spot prices hold beneath the technical cloud formation located near 6.7815.
Movements Across Major Currencies and Easing Greenback
Broad currency markets showed notable divergence across other major pairs. Ahead of the Asian market open on Friday, AUD/USD extended Wednesday losses by dipping into the low 0.6900s before attempting a modest recovery toward 0.6950. The Australian Dollar experienced persistent weakness even as the Greenback receded slightly in response to improving sentiment across broader risk assets.
Meanwhile, USD/JPY fell back into negative territory below 158.00 during Thursday trading in Asia, driven by rising speculation that official authorities might intervene directly to support the Japanese Yen. Concurrently, the US Dollar retreated from levels near an 18-month high due to profit taking. This retreat unfolded even as markets digested hawkish FOMC Minutes from Wednesday and heightened concerns regarding potential escalation in the Middle East, compounding the downward correction in the currency pair.
Gold Rebounds Amid Sliding US Treasury Yields
Alongside foreign exchange fluctuations, precious metals experienced notable price recovery. Gold regained stability and advanced toward the vicinity of 4,150 dollars per troy ounce following solid gains on Thursday. The resurgence in bullion was underpinned by fading upward momentum in the US Dollar and a considerable decline in US Treasury yields across the entire curve, providing fresh room for non-yielding commodities to advance.
