FX strategists at UOB Group note a deeper pullback is expected in case USD/CNH clear the 6.9250-level.

• "24-hour view: The rapid and sharp drop to 6.9292 and the subsequent rebound in USD came as a surprise. The choppy price action has resulted in a mixed outlook. For today, USD is expected to trade sideways, likely staying within yesterday's 6.9292/6.9678 range.
• Next 1-3 weeks: We have held the same view since last Thursday (02 Jan, spot at 6.9700) that USD is expected to trade sideways between 6.9300 and 7.0200 but we highlighted 'the bottom of the expected range at 6.9300 is more vulnerable'. While USD rebounded after plummeting to a low of 6.9292 yesterday (07 Jan), the risk for further USD weakness has increased. However, USD has to close below December's low near 6.9250 in order to indicate that it is ready for a sustained decline in the coming weeks. Meanwhile, USD is expected to stay on the back foot unless it can reclaim 6.9800."