USD/CNH still seen within the 6.6500-6.7500 range – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted USD/CNH is expected to keep its consolidative mood between 6.6500 and 6.7500 in the next weeks.

Key Quotes

24-hour view: “We expected USD to trade sideways yesterday. However, USD surged to a high of 6.7220 before pulling back. The rapid rise appears to be running ahead of itself and USD is unlikely to strengthen further. For today, USD is more likely to consolidate and trade between 6.6700 and 6.7200.”

Next 1-3 weeks: “USD soared and took out our ‘strong resistance’ level at 6.7100 yesterday (high of 6.7220). The break of the ‘strong resistance’ level indicates that the downward pressure that started about a week ago has eased. The current movement appears to be part of a consolidation phase and USD is likely to trade between 6.6500 and 6.7500.”