USD/CNH: Likely to trade in a range between 7.1780 and 7.1950 – UOB Group

US Dollar (USD) is likely to trade in a range between 7.1780 and 7.1950. In the longer run, USD is expected to trade in a range of 7.1730/7.2000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is expected to trade in a range

24-HOUR VIEW: "We noted yesterday that 'there has been a slight increase in upward momentum.' However, we were of the view that 'this is likely to lead to a higher range of 7.1800/7.1950 instead of a continued advance.' Our view did not materialise, as USD traded in a tight range of 7.1792/7.1884, closing largely unchanged at 7.1872 (-0.02%). The price action provides no fresh clues, and we continue to expect range trading today, probably between 7.1780 and 7.1950."

1-3 WEEKS VIEW: "Our most recent narrative was from last Thursday (14 August, spot at 7.1800), in which we indicated that 'downward momentum is building, but for a continued decline, USD must first close below 7.1700.' Aside from a brief dip to a low of 7.1690, USD has not been able to make much headway on the downside, as it traded in a quiet manner over the past couple of days. The buildup in downward momentum has largely faded, and from here, we expect USD to trade in a range of 7.1730/7.2000."