USD/CNH faces further consolidation – UOB

FX Strategists at UOB Group stick to the view that USD/CNH should trade within a 6.9500-7.0230 range in the next weeks.

Key Quotes

24-hour view: “USD traded between 6.9738 and 6.9900 yesterday, narrower than our expected sideway-trading range of 6.9750/6.9950. The underlying tone has firmed somewhat and further sideway-trading would not be surprising, albeit likely at a higher range 6.9770/7.0000.”

Next 1-3 weeks: “We have expected USD to ‘trade sideways’ for more than a week now and since then USD has not gone anywhere as it traded mostly sideways. In other words, there is no change in our view and we continue to expect USD to trade between 6.9500 and 7.0230 for now.”