USD/CNH keeps looking to 6.4880 – UOB

UOB Group’s FX Strategists reiterated USD/CNH faces further gains once 6.4880 is cleared.

Key Quotes

24-hour view: “We expected USD to ‘strengthen to 6.4830’ but we were of the view that ‘the major resistance at 6.4880 is unlikely to come into the picture’. Our expectations did not quite materialize as USD rose to 6.4800. Upward momentum has not improved by much and USD is unlikely to strengthen much further. For today, USD is more likely to trade between 6.4690 and 6.4830.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (29 Sep, spot at 6.4730). As highlighted, shorter-term upward momentum is beginning to improve but USD has to close above 6.4880 before a sustained rise can be expected. At this stage, the odds for USD to close above 6.4880 are not high but it would remain intact as long as USD does not move below 6.4600 within these couple of days.”