USD/CNH should remain side-lined so far – UOB
FX Strategists at UOB Group noted USD/CNH is expected to keep the consolidative fashion in the near-term.
24-hour view: “Expectation for USD to trade sideways was incorrect as it rebounded to a high of 7.0095 last Friday. The advance appears to be running ahead of itself and further USD strength appears unlikely. From here, USD could edge lower but any weakness is viewed as part of a 6.9800/7.0150 range.”
Next 1-3 weeks: “Despite the relatively strong bounce of +0.43% last Friday, we continue to hold the view that USD is likely to ‘trade sideways for now’. Only a clear break above 7.0230 would indicate that USD is ready to tackle 7.0500. Otherwise, the current movement is viewed as part of a broad 6.9500/7.0230 range (adjusted from 6.9300/7.0100 previously).”