The People’s Bank of China set a weaker daily fixing, signalling caution after the yuan strengthened sharply against the dollar.
MoneyTurkey Currencies Desk | 2 November 2026
Key points
- USD/CNH fell to 6.6564, down 0.07% on the day, according to United Overseas Bank data.
- The bank sees the next support at 6.6450 and strong resistance at 6.6640.
China’s central bank set a weaker yuan fixing on Friday, a move that traders read as an attempt to slow the currency’s recent gains. The dollar-yuan offshore rate fell to 6.6564, a 0.07% decline, after the fixing. United Overseas Bank strategists said the pair remains under downward pressure and could test 6.6520 next. A break below that level is seen as unlikely in the near term.
What happened
The offshore USD/CNH pair declined more than expected after the weaker fixing, reaching an intraday low of 6.6559 before closing at 6.6564. United Overseas Bank had forecast a limited move within 6.6575-6.6655, but the rate moved below that band. The bank now places immediate support at 6.6520 and the next downside target at 6.6450. On the topside, 6.6640 is described as strong resistance.
What is driving the currency
The People’s Bank of China set the daily fixing at a weaker level than the previous close, a step traders interpreted as an effort to curb the yuan’s recent appreciation. United Overseas Bank noted that the pair has been edging lower since mid-month and that downward momentum has not yet stabilised. The bank maintains a negative stance on USD/CNH and sees scope for further modest declines if the 6.6520 level gives way.
Why it matters
A weaker fixing reduces the incentive for carry trades that rely on steady yuan appreciation and limits the scope for further short-dollar positions. For traders, the 6.6450 level now serves as the next clear marker; a move through it would confirm the downtrend, while a bounce above 6.6640 would signal that the decline has stalled. The fixing also keeps markets alert to possible further policy signals from Beijing if the yuan’s strength resumes.
What to watch
- Next PBOC fixing and any deviation from recent levels
- USD/CNH reaction to 6.6520 support test
- Flow data showing changes in offshore long-yuan positions
For information only. Not investment advice.
