, we maintain continuous monitoring of real-time foreign exchange volatility. Timely FX market analysis empowers our worldwide B2B partners to rationalize order planning, lock procurement budgets and hedge cross-border settlement risks amid complex global geopolitical and economic environments. Below is the authoritative short-term outlook for CNY and US Dollar Index.
On May 29, the USD/CNY exchange rate touched an intraday trough of 6.7657. Minor corrective rebounds emerged throughout the trading session yet lacked sustained bullish momentum, driving the currency pair to close lower and reflecting a notable appreciation of the Renminbi.
From a short-term perspective, the volatile downtrend of USD/CNY remains intact. Should the bearish momentum extend further, the exchange rate is poised to retest the key support low of 6.6905 recorded in January 2023.
The US Dollar Index rallied to a weekly high of 99.54 last week before undergoing a pullback on profit-taking.
For forward market dynamics: if the index stages a rebound post-correction, breaks above the technical resistance threshold of 100.15 and secures sustained footing above this level, a new round of bullish movement is highly probable. Market participants shall remain vigilant against downside risks. Once corrective pressure triggers a decisive breakdown below the medium-and-long-term trend support at 97.93, the prevailing uptrend of the US Dollar Index will be invalidated.
