USD/CNH continued to drift lower, thanks to softer USD and taking cues from fixing guidance. Pair was last at 7.2737, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Corrective pullback likely

“Policymakers continue to manage the daily fix, setting it lower at 7.1848 vs. 7.1879 (yesterday). Fixing pattern continues to suggest that PBoC is doing whatever it takes to not only restraint the RMB from over-weakening but also to guide its bias and direction.”

“Tariff may hurt RMB when it happens but that may be a story for 2025 after Trump inauguration. Meantime, we would keep a look out for the CEWC meeting on 11-12 Dec.”

“Daily momentum is flat while RSI fell. Corrective pullback likely. Support at 7.2510 (21 DMA), 7.22 levels. Resistance at 7.32, 7.3450 levels.”