USD/CNH: No changes to the consolidation theme – UOB
|USD/CNH is expected to cling to the current 7.3050-7.3470 range for the time being, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
Key Quotes
24-hour view: Last Friday, we noted that “the price action is likely part of a consolidation phase,” and we expected USD to “trade sideways in a range of 7.3150/7.3350.” USD then traded in a slightly narrower range of 7.3161/7.3351. While USD is likely to continue to trade in a range, the slightly firm underlying tone suggests a higher range of 7.3170/7.3380.
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.
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