Chinese Yuan: Gradual upside within defined bands – UOB

United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann expect USD/CNH to edge lower intraday while staying confined to a narrow 6.7000–6.7100 band. Over the coming one to three weeks, they maintain a range-trading view between 6.6950 and 6.7270. On a one to three month basis, they see USD/CNH continuing to drift lower as long as it remains below the cloud resistance near 6.7815.

Narrow intraday band, soft medium-term bias

"24-HOUR VIEW: We expected USD to “trade sideways between 6.7000 and 6.7105” yesterday. However, USD rose to 6.7146 and then retreated quickly to close unchanged at 6.7038. There has been a slight increase in downward momentum. Today, USD could edge lower, but it is likely to stay within a 6.7000/6.7100 range."

"1-3 WEEKS VIEW: In our most recent narrative from last Tuesday (29 Sep, spot at 6.7110), we highlighted that “for the time being, we expect USD to trade in a range between 6.6950 and 6.7270.” We continue to hold the same view for now."

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