USD/CNH has moved into a consolidative range of 6.4300-6.4900, according to UOB Group’s FX Strategists.
Observation for 24 hours: “Yesterday, the USD traded between 6.4571 and 6.4717, a tighter range than our forecast of 6.4550/6.4750. Despite the lack of price movement, the underlying tone appears to have improved. Although the dollar may strengthen, a sustained move over 6.4780 is doubtful. 6.4610 is the first level of support, followed by 6.4550.”
Within the next 1-3 weeks: “There isn’t much else to say about Monday’s report (28 Jun, spot at 6.4605). As previously stated, the USD likely struck a short-term bottom last week, but it is still too early to predict a significant pullback. For the time being, the USD is more likely to move sideways in the 6.4300/6.4900 area.”
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