USD/CNH: Likely to trade in a range between 7.1660 and 7.1860 – UOB Group
|US Dollar (USD) is likely to trade in a range between 7.1660 and 7.1860. In the longer run, mild downward pressure could lead to USD edging lower; it remains to be seen if it can reach 7.1400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Mild downward pressure could lead to USD edging lower
24-HOUR VIEW: "Subsequent to the drop in USD to 7.1701 two days ago, we indicated yesterday that USD 'could continue to weaken, but any further decline is unlikely to break below 7.1600.' We were not wrong, as USD dropped to 7.1645 before rebounding to close largely unchanged at 7.1747 (+0.05%). The current price movements are likely part of a range trading phase, probably between 7.1660 and 7.1860."
1-3 WEEKS VIEW: "Last Thursday (29 May, spot at 7.2025), we highlighted that USD 'is likely to trade in a range between 7.1800 and 7.2300 for now.' After USD dropped to a low of 7.1701, we revised our view and adopted a slight bearish bias yesterday (05 Jun, spot at 7.1730). We indicated that 'mild downward pressure could lead to USD edging lower, but it remains to be seen if it can reach 7.1400.' We also indicated that 'should USD break above 7.1960, it would indicate that the current mild downward pressure has faded.' Our view remains unchanged."
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