UOB Group’s FX analysts predict that the USD/CNH will stay within a range of 7.1200 to 7.1550. Recently, the rate dipped to 7.1242, then bounced back to 7.1377, according to analysts Quek Ser Leang and Peter Chia. The outlook for the next 24 hours indicates that the USD is likely to trade between 7.1300 and 7.1480, with little chance of a sharp decline. Over the past week, there has been a change in expectations; analysts initially thought the rate would rise to 7.1650. However, the USD dropped below the critical support level of 7.1330, hitting a low of 7.1242.

USD/CNH To Stay Range Bound

Despite a loss of upward momentum, there hasn’t been an increase in downward pressure. As a result, the USD/CNH is expected to remain range-bound between 7.1200 and 7.1550 in the coming weeks. This analysis comes from the FXStreet Insights Team, who gather insights from various experts. Given the current price trends, we anticipate that USD/CNH will remain confined to a narrow range for the next few weeks, likely trading between 7.1200 and 7.1550. The drop below support earlier this week quickly reversed, showing there is minimal interest in pushing the yuan significantly stronger right now. This sideways movement is supported by recent economic data. Last week’s US inflation report for September 2025 showed a stubborn 3.5%, preventing the Federal Reserve from considering rate cuts but not signaling a new hiking cycle. This caps dollar strength and strengthens resistance around the 7.1550 level. On the other hand, China’s Q3 2025 GDP figures indicated stable 4.8% growth, and recent trade balance data showed a slight increase in exports. This economic stability reduces the need for aggressive easing by the People’s Bank of China, providing solid support for the yuan at the 7.1200 level.

Trading Strategy in Low Volatility

For derivative traders, this market suggests strategies that take advantage of low volatility. Selling short-dated strangles with strikes just outside the expected 7.1200-7.1550 range, such as a 7.1600 call and a 7.1150 put, could be a good approach. This strategy benefits from time decay as long as the price remains within this range. The main risk is a breakout caused by unexpected economic news, such as the upcoming US employment report. We experienced greater volatility in this pair in 2023, so it’s wise to remain cautious. Traders should set stop-loss orders if the price breaks significantly outside the established range. Create your live VT Markets account and start trading now.

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