USD/CNY to extend its climb towards next resistance at 7.0350 – OCBC

USD/CNY has broken the 7 figure. Economists at OCBC Bank expect the pair to enjoy further gains, eyeing resistance at 7.0350.

Upside Risks

“Daily momentum is mild bullish while RSI rose. Upside risks ahead.” 

“Resistance at 7.0350, 7.05.”

“Support at 7.00, 6.9870 levels.”

“PBoC continued to rely on daily fix to manage/guide RMB moves but the bar was raised to 6.93 levels from 6.91. We reiterate that a stronger fix would continue to be featured but could only serve as an attempt to slow the pace of RMB depreciation.”