Chinese Yuan: Sideways with firmer bias against US Dollar - UOB

FXStreet Insights Team FXStreet

United Overseas Bank (UOB) strategist Quek Ser Leang reports USD/CNH slipped to 6.7008 before closing at 6.7041, with intraday price action expected to stay between 6.7000 and 6.7105. For the coming 1–3 weeks, he continues to see the pair confined to a 6.6950–6.7270 range. On a 1–3 month view, he expects USD/CNH to keep edging lower as long as it trades below the cloud’s upper boundary near 6.7815.

Dollar-Offshore Yuan trapped in tight range

"24-HOUR VIEW: We expected USD to “trade in a range between 6.7085 and 6.7230 last Friday.” Our view was incorrect, as USD dropped to a low of 6.7008 before trading sideways for the rest of the session. USD closed 0.15% lower at 6.7041. The slight increase in downward momentum is insufficient to indicate a sustained decline. Today, USD is likely to trade sideways between 6.7000 and 6.7105."

"1-3 WEEKS VIEW: In our most recent narrative from last Tuesday (29 Sep, spot at 6.7110), we highlighted that “for the time being, we expect USD to trade in a range between 6.6950 and 6.7270.” We continue to hold the same view for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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