USD/CNH faces further consolidation near-term – UOB

USD/CNH is expected to keep the 6.5400-6.5800 range unchanged for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘rise above 6.5700’ was incorrect as it dropped to 6.5456. While downward momentum has not improved by much, there is room for USD to test 6.5400 first before a recovery can be expected. On the upside, a break of 6.5620 would indicate that the current mild downward pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view from yesterday (12 Apr, spot at 6.5630). As indicated, the current movement is viewed as part of a consolidation and USD is expected to trade between 6.5400 and 6.5800 for now. Shorter-term downward momentum has improved somewhat but USD has to close below 6.5400 before a more sustained decline can be expected.”