USD/CNH faces consolidation between 7.0450 and 7.1250 – UOB

FX Strategists at UOB Group believe USD/CNH has now moved into a consolidative phase.

Key Quotes

24-hour view: “Our expectation for USD the ‘pullback in USD to extend lower to 7.0550’ did not materialize as it traded in a relatively narrow range between 7.0696 and 7.0883. The price action offers no fresh clues and for today, USD is likely to consolidate and trade between 7.0680 and 7.0930.”

Next 1-3 weeks: “USD traded in a relatively quiet manner last Friday and for now, we continue to hold the same view from last Thursday (16 Apr, spot at 7.0770) wherein USD ‘has likely moved into a consolidation phase’ and ‘is likely to trade between 7.0450 and 7.1250 for a period’.”