The exchange rate for the US Dollar to Chinese Yuan is expected to stay between 7.1220 and 7.1350. In the long term, it might also reach around 7.1450. In the last 24 hours, the USD saw a small rise, reaching 7.1380 before ending nearly the same at 7.1306. It is likely to remain within the aforementioned range looking ahead.

Mildly Positive Outlook for USD

Over the next one to three weeks, there is a cautiously optimistic view for the US Dollar, with the possibility of testing 7.1450. For this upward trend to continue, it needs to maintain levels above 7.1170. The FXStreet Insights Team, made up of skilled journalists, provides more observations and content. They share insights based on market trends from respected experts and offer additional analysis from various analysts. Financial markets can change quickly. FXStreet aims to provide timely insights instead of just reporting news. The information is for educational purposes, and individuals should do their research before engaging in market activities. We anticipate the USD/CNH will trade within a tight range of 7.1220 and 7.1350 soon. The current price movements suggest a period of consolidation. Traders should be cautious with aggressive bets in the short term.

Potential for US Dollar to Test 7.1450

In the coming weeks, we see a chance for the US Dollar to test the 7.1450 mark. This mildly positive outlook is backed by solid recent data indicating a strong US economy. Last week’s non-farm payroll report showed a gain of 210,000 jobs. The core inflation rate, which is at 3.8%, suggests the Federal Reserve will likely not cut interest rates soon. On the other hand, recent economic data from China is less favorable, indicating a weaker yuan. The Caixin Manufacturing PMI for October fell just below the 50-point mark to 49.8, signaling slight contraction. We have also observed weak industrial output and exports in 2025, indicating the People’s Bank of China may adopt a more supportive monetary policy. Traders looking to benefit from this potential upward move might consider buying call options with a strike price near 7.1450. This strategy allows for gains if the dollar strengthens while clearly defining the maximum risk. Given the limited upward momentum, options could be a better choice than outright long positions. The key support level to watch is 7.1170. Our positive outlook remains as long as the dollar stays above this level. If it drops below, it would indicate that the upward momentum has weakened. Traders may want to use this level to exit long positions or buy put options as protection against potential declines. Looking back to late 2023, there was a similar dynamic with a strong US economy and a slowing China, pushing the USD/CNH pair towards 7.30. Although we are not predicting such a sharp move now, it serves as a reminder that the pair can trend strongly when fundamentals align. This highlights the importance of monitoring the 7.1170 support level. Create your live VT Markets account and start trading now.

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