USD/CNH: Downside momentum appears subsided – UOB

UOB Group’s FX Strategists remains of the view that USD/CNH is expected to trade within the 6.4240/6.4800 range for the time being.

Key Quotes

24-hour view: “We expected USD to ‘trade between 6.4460 and 6.4660’ yesterday. USD subsequently traded within a narrower range than expected (6.4481/6.4566). The quiet price actions offer no fresh clues and further sideway-trading appears likely. Expected range for today, 6.4450/6.4650.”

Next 1-3 weeks: “There is not much to add to our update from Wednesday (06 Oct, spot at 6.4500). As highlighted, the recent downside risk has dissipated and USD is likely to trade between 6.4240 and 6.4800 for a period of time.”