USD/CNH has now moved into a consolidative phase – UOB

USD/CNH is seen trading within a side-lined pattern in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘edge higher to 7.0960’ did not materialize as it traded in a relatively quiet manner between 7.0701 and 7.0905 before ending the day largely unchanged at 7.0760 (-0.06%). The quiet price action offers no fresh clues and USD could continue to trade sideways. Expected range for today, 7.0650/7.0920.”

Next 1-3 weeks: “USD traded in a quiet manner for the past few days and there is not much to add to our update from Monday (15 Jun, spot at 7.0880). As highlighted, the current movement in USD is deemed as part of consolidation phase and USD is expected to trade between 7.0500 and 7.1250 for a period.”