USD/CNH clings to the consolidative range so far – UOB

Further range bound trade remains likely in USD/CNH for the time being, comment Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: Yesterday, we expected USD to trade sideways in a range of 7.3000/7.3200. USD then dropped to 7.3008 and then rose to a high of 7.3268. Despite the advance, upward momentum has only improved slightly. Today there is room for USD to rise, but any advance is unlikely to threaten the major resistance at 7.3400 (there is another resistance at 7.3300). Support is at 7.3100, followed by 7.3000.

Next 1-3 weeks: We continue to hold the same view as last Thursday (21 Sep, spot at 7.3150), wherein the recent downward pressure has faded, and USD is likely to trade in a range, probably between 7.2800 and 7.3400.