Further range bound trading within 6.6600-6.7400 is predicted in USD/CNH in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “Yesterday, we held the view that ‘there is scope for USD to weaken but a sustained decline below 6.6700 is unlikely’. USD subsequently dropped to 6.6720 before rebounding to close little changed at 6.6955 (+0.06%). The underlying tone has firmed somewhat and USD could edge higher but 6.7200 is unlikely to come into the picture. Support is at 6.6860 followed by 6.6750.”
Next 1-3 weeks: “Our update from Monday (20 Jun, spot at 6.7080) still stands. As highlighted, the recent build-up in downward momentum has eased and USD is likely to trade between 6.6600 and 6.7400 for now. Looking ahead, a clear break of 6.6600 would indicate that USD is ready to head lower towards 6.6300.”