Chinese Yuan: Range-bound consolidation outlook against US Dollar – UOB
United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann discuss recent volatility in USD/CNH after a sharp rebound and subsequent drop.
UOB analysts Quek Ser Leang and Lee Sue Ann have shared an outlook on the Chinese Yuan's (CNH) performance against the US Dollar (USD). Recently, USD/CNH experienced heightened volatility after a rapid rebound followed by a significant drop. Currently, they anticipate USD to trade within a defined range, both intraday and over the next 1-3 weeks.
While downward momentum has intensified, it has not been strong enough to indicate a sustained decline. For significant recovery, CNH needs to break through its key technical resistance level. In the short-term, USD is expected to stay within the range of 6.7230 and 6.7330. However, the volatility in price action has been unexpected, making it difficult to derive conclusions.
In the longer-term, USD could potentially edge lower, but it is more likely to remain contained within the 6.7050/6.7300 range.
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