USD/CNH: extra gains likely above 7.06 – UOB

FX Strategists at UOB Group see USD/CNH advancing further if it clears 7.06.

Key Quotes

24-hour view: “USD traded within a narrow range of 7.0280 and 7.0380 yesterday. The quiet price action suggests USD could continue to trade sideways even though the slightly weakened underlying tone could lead to a lower trading range of 7.0200/7.0350”.

Next 1-3 weeks: “USD traded in a quiet manner over the past few days and there are no fresh clues. We continue to hold the same view from last Thursday (21 Nov, spot at 7.0475) wherein further USD strength is likely only if it could move above 7.0600. Until then, we view the current price action as part of a broad 6.9750/7.0600 consolidation range”.