USD/CNH: Likely to trade in a range between 7.1700 and 7.1950 – UOB Group

US Dollar (USD) is likely to trade in a range between 7.1700 and 7.1950. In the longer run, USD has likely moved into a 7.1620/7.2200 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD has likely moved back into a range trading phase

24-HOUR VIEW: "We expected USD to 'edge higher', but we pointed out that 'any advance is likely limited to a test of 7.2070.' However, USD fell and closed at 7.1740 before rebounding in early Asian trade today. The decline did not result in a significant increase in downward momentum. This, combined with the rebound, suggests USD is likely to trade in a range today, probably between 7.1700 and 7.1950."

1-3 WEEKS VIEW: "In our most recent narrative from Monday (09 Jun, spot at 7.1870), we highlighted that the recent 'mild downward momentum has eased, and USD has likely moved back into a range trading phase, probably between 7.1620 and 7.2200.' Since then, USD has traded within the range, and our view remains unchanged for now."