UOB Group’s FX Strategists noted USD/CNH is still seen within the 6.4300-6.4900 range in the next weeks.
Key Quotes
24-hour view: “Our expectation for USD to ‘edge higher’ did not materialize as it traded within a surprisingly tight range of 102 pips (6.4588/6.4690). Despite the quiet price actions, we continue to see chance for USD to edge higher but a sustained rise above 6.4780 appears unlikely. Support is at 6.4600 followed by 6.4550.”
Next 1-3 weeks: “USD traded in a quiet manner the past couple of days and our update from Monday (28 Jun, spot at 6.4605) still stands. As highlighted, USD expected to trade sideways, likely within a 6.4300/6.4900 range.”