USD/CNH: Further consolidation in the pipeline – UOB

UOB Group’s FX Strategists still see USD/CNH navigating within the 6.3300-6.3900 range for the time being.

Key Quotes

24-hour view: “Our expectations for USD to ‘rise above 6.3800’ did not materialize as it traded sideways within a tight range of 6.3703/6.3779. The underlying tone still appears to be a tad firm and we continue to see chance for USD to rise above 6.3800. The next resistance at 6.3880 is unlikely to come under threat. Support is at 6.3650 followed by 6.3600.”

Next 1-3 weeks: “We continue to hold the same view as from last Thursday (17 Mar, spot at 6.3600). As highlighted, the recent upward pressure has eased and USD is likely to consolidate and trade within a broad range of 6.3300/6.3900 for now.”