USD/CNH: The 6.84 area is now on the radar – UOB
In opinion of FX Strategists, USD/CNH could slip back to the 6.84 region in the next weeks.
24-hour view: “While our view for USD to weaken last Friday was not wrong, the sharp decline to 6.8588 came as a surprise (we were expecting USD to trade at a lower range of 6.8660/6.8870). The rapid drop appears to be running ahead of itself and further sustained weakness is unlikely. USD is more likely to consolidate and trade sideways, expected to be within a 6.8550/6.8800 range.”
Next 1-3 weeks: “USD closed at 6.8766 [on Thursday] (-0.22%), the lowest daily closing since July last year. The price action is in line with view that USD may decline further to 6.8400. Only a move above 6.9250 would indicate that the current USD weakness has stabilized.”