USD/CNH sticks to the consolidative theme so far – UOB

USD/CNH is still predicted to trade within the 7.2500-7.3300 range in the next few weeks, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We noted yesterday that “the price actions still appear to be consolidative” and we expected USD to trade between 7.2750 and 7.3040. Our view was not wrong, even though USD traded in a narrower range than expected (7.2807/7.3045). The price actions offer no fresh clues. Today, we expect USD to trade in a range of 7.2800/7.3040. 

Next 1-3 weeks: Our latest narrative was from last Thursday (24 Aug, spot at 7.2840) when we highlighted that, “the recent buildup in upward momentum has eased, and USD is likely to trade in a range of 7.2500/7.3300 for the time being.” There is no change in our view.