USD/CNH still points to further consolidation – UOB

USD/CNH remains side-lined within the 6.6500-6.8000 range in the short-term, according to FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the rebound from the low amidst oversold conditions suggests that USD is unlikely to weaken further’ and we expected USD to ‘trade between 6.6580 and 6.7050’. USD subsequently trade within a narrower range than expected (6.6605/6.6927). We continue to view the price actions as part of a consolidation and we expect USD to trade within a range of 6.6590/6.6880.”

Next 1-3 weeks: “There is no change in our view from Monday (30 May, spot at 6.7200). As highlighted, the recent choppy price actions have resulted in a mixed outlook and USD could trade within a broad range of 6.6500/6.8000 for now.”