Chinese Yuan: Range consolidation holds against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that USD/CNH remains in a consolidation phase, with intraday price action confined to tight ranges. They describe recent moves as part of a broader sideways pattern and reiterate that, for now, the Dollar is expected to trade within defined boundaries between 6.7700 and 6.8100 against the Chinese Yuan.

Dollar-Yuan pair stuck in range

"24-HOUR VIEW: Last Friday, USD dropped to 6.7766 before rebounding to close at 6.7818. Yesterday, when USD was at 6.7845, we highlighted that “the sharp decline appears to have stabilised somewhat, and today USD is likely to consolidate between 6.7780 and 6.7920.” Our view of consolidation was not wrong, even though USD traded within a slightly narrower range than expected (6.7779/6.7895). The price action still appears to be part of a consolidation phase. Today, we expect USD to trade between 6.7785 and 6.7915."

"1-3 WEEKS VIEW: We continue to hold the same view as last Friday (10 Jul, spot at 6.7930). As highlighted, “for the time being, we expect USD to trade in a range, most likely between 6.7700 and 6.8100.”"

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