USD/CNH stays focused on 6.4900 – UOB

The upward momentum could push USD/CNH to the 6.4900 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘strengthen further’ did not materialize as it traded between 6.4650 and 6.4829 before closing little changed at 6.4753 (-0.02%). The outlook for today is mixed and USD could trade sideways within a 6.4670/6.4870 range.”

Next 1-3 weeks: “We highlighted yesterday (07 Jul, spot at 6.4800) that ‘shorter-term upward momentum has improved and from here, USD is expected to trade with an upward bias towards 6.4900’. While there is no change in our view for now, USD has not been able to make much headway on the upside as it traded within a 6.4650/6.4829 range before closing little change at 6.4753 (-0.02%). We continue to expect USD to trade higher for now and only a breach of 6.4640 would indicate that the current upward pressure has eased.”