No changes to the consolidation theme around USD/CNH in the near term, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
Key Quotes
24-hour view: “We highlighted yesterday that ‘momentum indicators are neutral’ and we expected USD to ‘trade sideways within a range of 6.6900/6.7200’. Our view for sideway trade sideways was not wrong even though USD traded within a narrower range than expected (6.6902/6.7116). Further sideway-trading still appears likely, expected to be within a range of 6.6850/6.7080.”
Next 1-3 weeks: “We have expected USD to trade sideways between 6.6600 and 6.7400 since last Monday (20 Jun, spot at 6.7080). While shorter-term downward momentum has improved somewhat, there is no change in our view for now.”