Chinese Yuan: Range-bound with slight downside bias against US Dollar – UOB

Quek Ser Leang at UOB notes USD/CNH remains directionless, trading narrowly around 6.71 with little change in momentum. Intraday, the pair is expected to hold between 6.7060 and 6.7160. On a 1–3 week horizon, UOB still sees potential for the Dollar to edge higher, but any advance should stay contained within a broader 6.7040–6.7290 range.

Chinese Yuan holds tight trading band

"24-HOUR VIEW: USD traded within a 6.7060/6.7146 range last Friday and closed little changed at 6.7093 (-0.09%). Yesterday, we indicated that “there has been no shift in either downward or upward momentum,” and we expected USD “to trade in a range of 6.7040/6.7120.” USD then traded between 6.7045 and 6.7143, closing unchanged at 6.7096. The price action provides no fresh clues. Today, USD could trade between 6.7060 and 6.7160."

"1-3 WEEKS VIEW: Last Friday (11 Sep, spot at 6.7140), we highlighted “the increasing upward momentum suggests USD could edge higher, but currently, any advance should stay within a 6.7040/6.7290 range.” Although upward momentum has slowed somewhat since then, 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.)