Chinese Yuan: Range trade persists against US Dollar – UOB

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/CNH confined to tight ranges in different time frames. For the next 24 hours, they expect the Dollar to trade between 6.7130 and 6.7230. Over 1–3 weeks, they see USD/CNH edging lower within 6.7050–6.7300, while a 1–3 month recovery needs a break above the 21-week EMA at 6.8430.

Dollar seen confined to tight ranges

"24-HOUR VIEW: Yesterday, we expected USD to “range-trade between 6.7180 and 6.7270.” USD then rose to 6.7266, dropped to 6.7162 before closing largely unchanged at 6.7178 (-0.07%). While there has been a slight increase in downward momentum, this is likely to lead to USD trading in a lower range of 6.7130/6.7230 rather than a sustained decline."

"1-3 WEEKS VIEW: We continue to hold the same view as two days ago (01 Sep, spot at 6.7180). As highlighted, the increase in downward momentum earlier this week “is insufficient to indicate a continued decline.” We also highlighted that USD “could edge lower within a 6.7050/6.7300 range.”"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)