USD/CNH: Extra rangebound looks likely – UOB

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According to FX Strategists at UOB Group, USD/CNH is forecast to navigate within the 6.5400-6.6200 range in the next weeks.

Key Quotes

24-hour view: “We expected USD to trade within a 6.5550/6.5890 range yesterday. USD subsequently traded within a narrower range than expected (6.5617/6.5825). The underlying tone has weakened somewhat and this could lead to USD drifting lower but any weakness is viewed as a lower trading range of 6.5550/6.6.5850 (a sustained decline below 6.5550 is not expected).”

Next 1-3 weeks: “There is not much to add to our update from Tuesday (24 Nov, spot at 6.5710). As highlighted, the recent weak phase in USD has ended and the current movement is viewed as part of a consolidation phase. From here, USD is expected to trade between 6.5400 and 6.6200 for a period of time.”

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