USD/CNH: Expected to trade in a range between 7.1550 and 7.1920 – UOB Group
Soft underlying tone is likely to lead to a lower range of 7.1635/7.1800 rather than a sustained decline. In the longer run, USD is expected to trade in a range between 7.1550 and 7.1920, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Soft underlying tone is likely to lead to a lower range
24-HOUR VIEW: "Yesterday, we were of the view that USD 'may edge lower.' However, we indicated that 'any decline is not expected to reach 7.1550.' We noted that 'there is another support level at 7.1635.' Our expectation did not materialise, as USD traded in a range of 7.1685/7.1799, closing largely unchanged at 7.1691 (-0.04%). Although the underlying tone still appears to be soft, this is likely to lead to a lower range of 7.1635/7.1800 rather than a sustained decline."
1-3 WEEKS VIEW: "Our most recent narrative was from last Monday (14 Jul, spot at 7.1730), in which we highlighted that USD 'is expected to trade in a range between 7.1550 and 7.1920.' Our narrative remains unchanged."
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