USD/CNH now looks stable around 6.8100-6.9200 – UOB
Further consolidation seems likely in USD/CNH around 6.8100 and 6.9200 for the time being, comment UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang.
Key Quotes
24-hour view: “We expected USD to trade in a range of 6.8700/6.8950 yesterday. USD subsequently traded between 6.8750 and 6.8975 before closing slightly higher at 6.8950 (+0.22%). The underlying tone has improved somewhat and USD is likely to edge higher today. In view of the mild upward pressure, any advance is unlikely to break 6.9110. On the downside, a break of 6.8850 would indicate that the current upward pressure has faded.”
Next 1-3 weeks: “Our latest narrative was from Monday (27 Mar, spot at 6.8700) wherein we highlighted that the recent USD weakness has stabilized and that USD is likely to trade between 6.8100 and 6.9200 for now. While we continue to hold the same view, short-term momentum has improved a tad, but at this stage, the odds for a clear break above 6.9200 are not high.”