In opinion of FX Strategists at UOB Group, the outlook for USD/CNH remains mixed for the time being.
Key Quotes
24-hour view: “Last Friday, we expected USD to ‘trade between 6.4500 and 6.4750’. USD subsequently traded within a narrower range than expected (6.4514/6.4725) before closing little changed at 6.4633 (+0.09%). The movement is deemed as part of a consolidation phase and further sideway-trading would not be surprising, likely between 6.4525 and 6.4750.”
Next 1-3 weeks: “Our update from last Friday (30 Jul, spot at 6.4650) still stands. As highlighted, the recent sharp but short-lived swings have resulted in a mixed outlook and USD could trade within a 6.4400/6.5000 range for now.”
