USD/CNH: Further side-lined trade remains on the table – UOB

USD/CNH is expected to keep the current consolidative mood for the time being, note Economist Lee Sue Ann and Markets Strategist Quek Ser at UOB Group.

Key Quotes

24-hour view: We expected USD to trade in a range between 7.3170 and 7.3380 yesterday. However, USD traded in a much narrower range of 7.3201/7.3318. The price action still appears to be consolidative. Today, we expect USD to trade in a range of 7.3150/7.3350. 

Next 1-3 weeks: Our latest narrative was from last Thursday (26 Oct, spot at 7.3260), wherein the recent buildup in downward momentum has faded, and USD is likely to trade in a range between 7.3050 and 7.3470 the time being. There is on change in our view.