USD/CNH now looks consolidative within 6.8100-6.9200 – UOB

USD/CNH should keep the side-lined trade well in place within the 6.8100-6.9200 range in the short-term horizon, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB.

Key Quotes

24-hour view: “Our view for USD to trade with a downward bias did not materialize as it traded in a muted manner between 6.8720 and 6.8900 before closing largely unchanged at 6.8796 (-0.05%). The price movements are likely part of a consolidation phase and we expect USD to trade in a range of 6.8700/6.8950 today.

Next 1-3 weeks: “There is not much to add to our update from Monday (27 Mar, spot at 6.8700). As highlighted, the recent USD weakness has stabilized. The current movement is likely the early parts of a consolidation phase and USD is likely to trade between 6.8100 and 6.9200 for now.”