USD/CNH remains poised for further range bound – UOB

USD/CNH could extend the consolidative phase between 6.6200 and 6.7200 in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Our expectations for USD to ‘trade within a range of 6.6420/6.6770’ were incorrect as it soared to a high of 6.6890 before pulling back. Despite the advance, upward momentum not improved by much and USD is unlikely to strengthen much further. For today, USD is more likely to trade between 6.6500 and 6.6900.”

Next 1-3 weeks: “Yesterday (07 Jun, spot at 6.6600), we highlighted that downward momentum is beginning to wane and a break of 6.6850 would indicate that the downside risk has dissipated. USD subsequently popped to a high of 6.6890. Downward pressure has dissipated and USD is likely to trade between 6.6200 and 6.7200 for now.”