USD/CNH: No changes to the consolidation theme – UOB

USD/CNH is still likely to maintain the 6.8500-6.9200 range for the time being, comment Economist Lee Sue Ann and Market Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “Our view yesterday was that USD ‘could test 6.9050 before the risk of a more sustained pullback increases’. Our expectation did not materialize as it traded quietly and in a tight range of 6.8861/6.8982 before closing largely unchanged at 6.8939 (+0.06%). Despite the quiet price actions, the underlying tone appears to be firm and we continue to see chance of USD testing 6.9050. The next resistance at 6.9200 is unlikely to come into view. On the downside, a break below 6.8800 (minor support at 6.8860) would indicate the current mild upward pressure has eased.”

Next 1-3 weeks: “USD traded sideways and in a quiet manner for the past few days. The consolidative price actions suggest further sideways trading, likely between 6.8500 and 6.9200.”