Further consolidation likely in USD/CNH – UOB

USD/CNH move into a 6.4300-6.4900 consolidative range, noted UOB Group’s FX Strategists.

Key Quotes

24-hour view: “USD traded between 6.4571 and 6.4717 yesterday, narrower than our expected 6.4550/6.4750 range. Despite the quiet price actions, the underlying tone seems to have improved somewhat. USD could edge higher but a sustained rise above 6.4780 appears unlikely. Support is at 6.4610 followed by 6.4550.”

Next 1-3 weeks: “There is not much to add to our update from Monday (28 Jun, spot at 6.4605). As highlighted, USD has likely found a short-term last week but it is too early to expect a sizeable pullback. USD is more likely to trade sideways for now, likely within a 6.4300/6.4900 range.”