The upward bias in USD/CNH could push it to another test of 6.4400 in the next weeks, commented FX Strategists at UOB Group.
24-hour view: “We expected USD to ‘consolidate and trade between 6.4000 and 6.4200’ yesterday. While our view for consolidation was not wrong, USD traded within a much narrower range than expected (6.4005/6.4100). The 95 pips range is the smallest 1-day range in about 9 months. The muted price actions offer no fresh clues and USD could continue to consolidate, albeit likely within a broader range of 6.3970/6.4170.”
Next 1-3 weeks: “Our narrative from yesterday (15 Jun, spot at 6.4090) still stands. As highlighted, USD “is expected to trade with an upward bias towards 6.4400. The upward bias is deemed intact as long as USD does not move below 6.3900 (‘strong support’ level was at 6.3830 yesterday).”