USD/CNH clings to the ongoing consolidative mood – UOB

USD/CNH continues to point to further side-lined trade in the short-term horizon, suggest UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: We highlighted yesterday that “there is room for USD to advance, but it is unlikely to threaten the major resistance at 7.3400.” Our expectations did not materialise as USD traded sideways in a tight range between 7.3061 and 7.3162 before closing largely unchanged at 7.3100 (-0.08%). Momentum indicators are mostly neutral, and further sideways trading is likely. Expected range for today; 7.3000/7.3200. 

Next 1-3 weeks: We continue to hold the same view as last Thursday (21 Sep, spot at 7.3150), wherein the recent downward pressure has faded, and USD is likely to trade in a range, probably between 7.2800 and 7.3400.