Further rangebound expected in USD/CNH – UOB

According to FX Strategists at UOB Group, the consolidative theme in USD/CNH is seen unaltered in the next weeks.

Key Quotes

24-hour view: “USD traded between 7.0150 and 7.0382 yesterday, close to our expected sideway-trading range of 7.0150/7.0400. The quiet price action no fresh clues and we continue to expect USD to trade between 7.0150 and 7.0400 for now.”

Next 1-3 weeks: “After USD staged a strong rally last Thursday, we highlighted on Friday (21 Feb, spot at 7.0460) that ‘further USD strength is likely’ but we were of the view ‘it is too early to anticipate a move to the Dec’s peak at 7.0865’. USD subsequently rose to 7.0567 before easing off. The weak opening this morning suggests 7.0567 is likely an interim top. From here, USD could trade sideways for a period, likely between 6.9800 and 7.0500.”