Chinese Yuan: Tight ranges persist against US Dollar – UOB

United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as confined to a narrow intraday band around 6.7000, with a slightly firmer tone in the very short term. Over 1–3 weeks they still expect range trading, while their 1–3 month view points to a gradual drift lower as long as key resistance near 6.7815 caps the upside.

UOB sees capped upside for USD/CNH

"24-HOUR VIEW: While we indicated yesterday that USD “could edge lower,” we were of the view that “it is likely to stay within a 6.7000/6.7100 range.” USD subsequently traded within a tight range, rising to 6.7056 before dipping to 6.6997. The underlying tone has firmed somewhat, and today, USD could edge higher, but it is still 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.)