United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that the USD/CNH pair remains in a consolidation phase, with intraday price action confined to tight ranges. They describe the recent moves as part of a broader sideways pattern and reiterate that for now, the dollar is expected to remain within specific limits between 6.7700 and 6.8100 against the Chinese yuan.
The dollar-yuan pair is stuck in range
“24-HOUR VIEW: Last Friday, USD fell to 6.7766 before recovering to close at 6.7818. Yesterday, when USD was trading at 6.7845, we highlighted that “the sharp decline appears to have stabilized somewhat and today USD is likely to consolidate between 6.7780 and 6.7920.” Our assessment of consolidation was not incorrect, even though the dollar exchange rate fluctuated in a slightly narrower range than expected (6.7779/6.7895). The price action still appears to be part of a consolidation phase. Today we expect USD to trade between 6.7785 and 6.7915.”
“1-3 WEEK PRESENTATION: We still maintain the same view as last Friday (July 10, spot price at 6.7930). As emphasized, “for now we expect the US dollar to remain in a range, most likely between 6.7700 and 6.8100.”
(This article was created with the support of an artificial intelligence tool and has been reviewed by an editor. Find out more.)
