Chinese Yuan: Tight ranges persist against US Dollar – UOB
United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as confined to a narrow intraday band around 6.7000, with a slightly firmer tone in the very short term.
United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann note that the USD/CNH exchange rate is confined to a narrow intraday band around 6.7000, with a marginal improvement in the immediate future. They anticipate range trading over the next 1-3 weeks, while projecting a gradual decline towards 6.7815 as resistance hinders the upward movement.
Although they mentioned a possible dip in USD yesterday, they believe it is more probable that the currency will remain within the 6.7000/6.7100 range. Subsequently, it did trade within this tight range, climbing to 6.7056 before falling to 6.6997. The overall sentiment has shown a slight firmness, and there is an expectation that USD could rise further, but it is still likely to stay within the 6.7000/6.7100 range.
In the upcoming weeks, the strategists maintain their earlier forecast of a USD trading range between 6.6950 and 6.7270. This perspective remains unchanged at present.
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