USD/CNH now seen within 6.4600-6.5050 – UOB

Further rangebound, likely between 6.4600 and 6.5050 appears probable in USD/CNH in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the oversold decline in USD could test 6.4730 first before the risk of a rebound would increase’. However, USD cracked 6.4730 and dropped to 6.4654 before rebounding slightly. Downward momentum is showing tentative signs of waning and this coupled with oversold conditions suggests that USD is unlikely to weaken much further. For today, USD is more likely to consolidate and trade between 6.4630 and 6.4850.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (24 Aug, spot at 6.4790). As highlighted, the outlook is mixed and USD could trade between 6.4600 and 6.5050 for a period of time. Looking ahead, the downside risk appears to be greater but USD has to close below the major support at 6.4500 before a sustained decline can be expected.”