USD/CNH now moved into a consolidation range – UOB

USD/CNH is now seen trading within the 6.4240-6.4800 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade between 6.4460 and 6.4660’ yesterday. USD subsequently traded within a narrower range than expected (6.4481/6.4566). The quiet price actions offer no fresh clues and further sideway-trading appears likely. Expected range for today, 6.4450/6.4650.”

Next 1-3 weeks: “There is not much to add to our update from Wednesday (06 Oct, spot at 6.4500). As highlighted, the recent downside risk has dissipated and USD is likely to trade between 6.4240 and 6.4800 for a period of time.”