USD/CNH: Further consolidation stays well on the cards – UOB

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

Key Quotes

24-hour view: “Our expectations for USD to ‘strengthen further to 6.4710’ did not materialize as it traded between 6.4497 and 6.4640 before closing little changed at 6.4555 (-0.05%). Momentum indicators have turned neutral and USD is likely to trade sideways for today, expected to be within a 6.4450/6.4650 range.”

Next 1-3 weeks: “We have held the same view since last Wednesday (06 Oct, spot at 6.4500). As highlighted, USD is likely to trade between 6.4240 and 6.4800 for a period of time. Looking ahead, the odds for a break of 6.4800 first are higher but USD has to close above 6.4880 before a sustained advance can be expected.”