UOB’s Quek Ser Leang notes that the USD/CNH pair has seen a slight acceleration in its downtrend, but still expects the pair to remain in trading range. The bank is currently looking for a lower intraday band around 6.7820-6.7940, while the 1-3 week outlook remains neutral with USD/CNH likely to trade in the range of 6.7750-6.8080.
USD/CNH remains within certain ranges
“24-HOUR VIEW: Two days ago, USD traded in a range of 6.7911/6.8025 and closed marginally at 6.7948 (+0.05%). Yesterday we indicated that “price action is not providing any novel clues and we continue to expect USD to trade in a range of 6.7860-6.7990.” Then the USD rate fluctuated in the range of 6.7840/6.7963 and then reached 6.7884 (-0.09%). There has been a slight increase in downside momentum, but this will likely lead to USD trading in the lower 6.7820/6.7940 range rather than a sustained decline.”
“1-3 WEEK OUTLOOK: We changed our view from positive to neutral two days ago (July 1, spot price: 6.7920). We emphasized that the recent USD ‘strength’ has ended.” We also emphasized that the US dollar “will likely trade in a range of 6.7750 to 6.8080.” We are still of the same opinion.”
(This article was created with the support of an artificial intelligence tool and has been reviewed by an editor.)
