USD/CNH faces extra consolidation in the short term – UOB

Extra side-line trading, likely between 7.3050 and 7.3470, is expected in USD/CNH for the time being, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: Our expectation for USD to strengthen yesterday did materialise as it traded sideways in a quiet manner between 7.3230 and 7.3332 before closing largely unchanged at 7.3230 (-0.09%). The price action is likely part of a consolidation phase. Today, USD could continue to trade sideways, albeit likely in a wider range of 7.3150/7.3350. 

Next 1-3 weeks: There is not much to add to our update from yesterday (26 Oct, spot at 7.3260). As highlighted, the recent buildup in downward momentum has faded. For the time being, USD is likely to trade in a range between 7.3050 and 7.3470.