USD/CNH still faces some consolidation near term – UOB

USD/CNH keeps the 6.6600-6.7400 range well in place for the time being, said FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “Yesterday, USD traded in a relatively quiet manner between 6.6810 and 6.7072 before closing largely unchanged at 6.6956 (-0.02%). The price actions are likely part of a consolidation. USD could continue to consolidate, likely between 6.6800 and 6.7100.”

Next 1-3 weeks: “We have expected USD to trade sideways between 6.6600 and 6.7400 for about 2 weeks now. Our view was not wrong as USD traded well within the expected range. There is no change in our view and only a break below 6.6600 or above 6.7400 would indicate that USD is ready to move in a directional manner.”